The credit exposure of Bank of Queensland for "loans and advances" varies by about $5 billion, or 20 per cent, between the so-called Pillar 3 disclosures, published yesterday for the first time by the bank, and the bank's financial statements.According to the Pillar 3 disclosure the bank has loans of $20.1 billion. The financial statements show loans of $25.6 billion.Discrepancies of this kind are to be expected under these disclosures, which banks are obliged by APRA to report quarterly and following the prudential guidelines based on the Basel 2 framework. Credit exposures under Basel 2, to simplify the differences, models the expected cash flow from loans differently and does not reconcile to the balance sheet.One detail fleshed out in the BOQ disclosure is that "other retail" represents almost all the bank's troubled loans.As disclosed in the bank's full year financials (and with the same number reported in the Pillar 3 disclosure) impaired loans were $31.6 million as at August 2008, a number that is the same in the financial statements and the Pillar 3 disclosures. This is twice the level (in nominal terms) of six months before and three times the level of 12 months before. BOQ took over Home Building Society late in its first half and that explains some of the increase. At 0.17 per cent of assets the impaired loans, in percentage terms, are twice the level of the year before.There are no corporate (or government, or bank) assets classified as impaired and only $7.2 million of home loans classified as impaired.That leaves $24.4 million of "other retail" loans as impaired, a category not otherwise explained in yesterday's disclosure of the financial statements published in early October.So the bulk of the bank's crappiest loans are in the residual of the credit card portfolio sold to Citigroup and the personal loan portfolios of BOQ and Home.The dozens of loans to the bank's own franchisees in New South Wales that are in distress still don't appear to be showing up as an issue in respect of reported asset quality, but they may yet do so.BOQ's annual report, for instance, misleadingly shows 54 owner-managed branches in NSW and only one corporate branch.  Based on this newsletter's knowledge of the control and financial arrangements for many of these branches, BOQ in practice has more like 40 corporate branches in NSW and few profitable franchised branches.