Graph 5  Looking at the Australian data in more detail, the proportion of banks’ on-balance sheet housing loans that were in arrears or impaired in December 2009 was 0.6 per cent. This is up from the very low levels in 2002–2003, but still low in absolute terms. The arrears rate has tended to be relatively stable in recent months.
However, it also underlines the procyclical nature of their actions: banks are more keen to offer credit when times are good, but become somewhat reluctant to advance credit facilities during times of uncertainty and economic slowdown. This behaviour of commercial banks is not unique to the USA.