ANZ is taking a brighter view of the outlook for credit quality in Australia but maintaining a dour assessment of prospects in New Zealand.The bank released most of its "management overlay" for Australia, one factor that allowed the bank to take a lower charge this half year, of $1.1 billion, to the income statement to cover increase in collective and individual provisions. This was down from a charge of $1.6 billion six months earlier and $1.3 billion 12 months earlier. The level of bad debts continues to advance. Gross impaired assets increased 21 per cent over six months to $5.3 billion, and 44 per cent higher than 12 months earlier.Net impaired assets at $3.8 billion increased 30 per cent over six months and by 60 per cent over 12 months.The ratio of gross impaired loans to advances increased to 1.53 per cent at March 2010 from 1.27 per cent six months ago and 1.03 per cent 12 months ago.ANZ said the main drivers of this increase in Australia were in "middle market and commercial segments". In New Zealand defaults were largely in rural, commercial and retail portfolios.The pattern of customer impairments is changing.In the March 2009, half property and construction accounted for more than 60 per cent of strife. In the September 2009 half ,property receded as a problem, with financial services firms accounting for more than a third of the new problem loans.In the March 2010 half, the industry mix of new impaired loans is more widespread. Agribusiness borrowers are prominent in the mix as are customers in "electricity, gas and water".