The incidence of home loan arrears among regional banks remains much higher than elsewhere in the sector, if one data set compiled by Standard & Poor's is any guide.Arrears levels of 30 days or more for prime RMBS increased to 0.98 per cent in December 2015, up from 0.92 per cent in November, S&P said in a monthly report yesterday.Nonbank financial institutions in December recorded arrears of 0.70 per cent "the lowest of all originator types," S&P said.But "regional banks had the highest arrears, at 1.74 per cent," the ratings agency said.The S&P arrears data reflects borrowers falling behind on loans pooled into mortgage-backed securities, a sub-set of their mortgage portfolios that may becoming less and less representative. New issuance of RMBS by smaller lenders has also been muted in recent years.Bendigo and Adelaide Bank this week said the levels arrears on residential loans was 0.49 per cent, less than one third the level for all regional banks reported by S&P.Still, "non-bank originators reported a 23 per cent decline in arrears," S&P said.Bendigo pointed out that "S&Ps reporting is for amounts 30 day past due, and includes loans in hardship. The figures reported in our results presentation is for amounts 90 days past due and does not include loans in hardship."