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Fair Value
12 Months Ended
Mar. 31, 2023
Fair Value Disclosures [Abstract]  
Fair Value FAIR VALUE
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The guidance on fair value measurements also specifies a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The fair value hierarchy gives the highest priority to quoted prices in active markets and the lowest priority to unobservable inputs, for example, the reporting entity’s own data. Based on the observability of the inputs used in the valuation techniques, the following three-level hierarchy is specified by the guidance:
Level 1—Unadjusted quoted prices for identical instruments in active markets.
Level 2—Observable inputs other than Level 1 prices for substantially the full term of the instruments, such as quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; other inputs that are observable; or market-corroborated inputs.
Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the instruments.
A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement.
The tables in this note except for Estimated Fair Value of Financial Instruments include the portion of the assets and liabilities held for sale.
The MUFG Group has an established and documented process for determining fair values in accordance with the guidance. When available, quoted prices are used to determine fair value. If quoted prices are not available, fair value is based upon valuation techniques that use observable or unobservable inputs. The fair values of liabilities are determined by discounting future cash flows at a rate which incorporates the MUFG Group’s own creditworthiness. In addition, valuation adjustments may be made to ensure the financial instruments are recorded at fair value. These adjustments include, but are not limited to, amounts that reflect counterparty credit quality, funding cost, liquidity risk and model risk.
The following section describes the valuation techniques used by the MUFG Group to measure fair values of certain financial instruments. The discussion includes the general classification of such financial instruments in accordance with the fair value hierarchy, a brief explanation of the valuation techniques, the significant inputs to those valuation techniques, and any additional significant assumptions.
Trading Account Assets and Liabilities—Trading Account Securities
When quoted prices are available in an active market, the MUFG Group uses quoted prices to measure the fair values of securities and such securities are classified in Level 1 of the fair value hierarchy. Examples of Level 1 securities include certain Japanese and foreign government bonds, and marketable equity securities.
When quoted prices are available but the securities are not traded in active markets, such securities are classified in Level 2 of the fair value hierarchy. These securities include certain Japanese government agency bonds, Japanese prefectural and municipal bonds, foreign government and official institution bonds, corporate bonds, residential mortgage-backed securities and equity securities.
As for quoted prices provided by third-party vendors, independent price verification is performed by the MUFG group to determine the quality and reliability of the data for fair value measurement purposes. As part of its independent price verification procedures, the MUFG group obtains a sufficient understanding of the vendors’ pricing sources and valuation processes. Further, the MUFG group performs internal price verification procedures to ensure that the quoted prices provided from the third-party vendors are reasonable. Such verification procedures include comparison of pricing sources and analysis of variances beyond certain thresholds.
When quoted prices are not available, the MUFG Group estimates fair values by using an internal model, quoted prices of securities with similar characteristics or non-binding prices obtained from independent third parties. Such securities include certain commercial paper, corporate bonds, asset-backed securities and residential mortgage-backed securities. For commercial paper, the MUFG Group estimates fair value using discounted cash flows. The cash flows are estimated in accordance with the terms of contracts and discounted using a discount rate based on the yield curve estimated from market interest rates appropriate to the securities. Commercial paper is generally classified in Level 2 of the fair value hierarchy. For corporate bonds, the MUFG Group estimates fair value using discounted cash flows. The cash flows are estimated in accordance with the terms of contracts and discounted using
discount rates applicable to the maturity of the bonds, which are adjusted to reflect credit risk of issuers. Credit risk of issuers is reflected in the future cash flows being discounted by the interest rate applicable to the maturity of the bonds. Corporate bonds are classified in either Level 1, Level 2 or Level 3 of the fair value hierarchy, depending primarily on the significance of the adjustments to the unobservable input of credit worthiness. For residential mortgage-backed securities, the MUFG Group estimates fair value using non-binding prices obtained from independent third parties. Residential mortgage-backed securities are classified as level 2 unless otherwise significant unobservable input is used for the valuation.
When there is less liquidity for securities or significant inputs used in the fair value measurements are unobservable, such securities are classified in Level 3 of the fair value hierarchy. Examples of such Level 3 securities include CLOs backed by general corporate loans, which are classified in asset-backed securities. The fair value of CLOs is measured by weighing the estimated fair value amounts from the internal model and the non-binding quotes from the independent broker-dealers. The weight of the quotes from independent broker-dealers is determined based on the result of inquiries with the broker-dealers to understand their basis of fair value calculation with consideration given to transaction volume. Key inputs to the internal model include projected cash flows through an analysis of underlying loans, probability of default which incorporates market indices such as LCDX (which is an index of loan credit default swaps), prepayment rates and discount rates reflecting liquidity premiums based on historical market data.
Trading Account Assets and Liabilities—Derivatives
Exchange-traded derivatives valued using quoted prices are classified in Level 1 of the fair value hierarchy. Examples of Level 1 derivatives include stock futures index and interest rate futures. However, the majority of the derivative contracts entered into by the MUFG Group are traded over-the-counter and valued using valuation techniques as there are no quoted prices for such derivatives. The valuation techniques and inputs vary depending on the types and contractual terms of the derivatives. The principal valuation techniques used to value derivatives include discounted cash flows, the Black-Scholes model and the Hull-White model. The key inputs include interest rate yield curve, foreign currency exchange rate, volatility, credit quality of the counterparty or the MUFG Group and spot price of the underlying. These models are commonly accepted in the financial industry and key inputs to the models are generally readily observable in an active market. Derivatives valued using such valuation techniques and inputs are generally classified in Level 2 of the fair value hierarchy. Examples of such Level 2 derivatives include plain-vanilla interest rate swaps, foreign currency forward contracts and currency option contracts.
Derivatives that are valued using valuation techniques with significant unobservable inputs are classified in Level 3 of the fair value hierarchy. Examples of Level 3 derivatives include long-term interest rate or currency swaps and certain credit derivatives, where significant inputs such as volatility and correlation of such inputs are unobservable.
Investment Securities
Investment securities include Available-for-sale debt and equity securities, whose fair values are measured using the same valuation techniques as the trading account securities described above. Investment securities also include investments in nonmarketable equity securities which are subject to specialized industry accounting principles. The valuation of such nonmarketable equity securities involves significant management judgment due to the absence of quoted prices, lack of liquidity and the long term nature of these investments. Further, there may be restriction on transfers of nonmarketable equity securities. The MUFG Group values such securities initially at transaction price and subsequently adjusts such valuations, considering evidence such as current sales transactions of similar securities, initial public offerings, recent equity issuances and change in financial condition of the investee company. Nonmarketable equity securities are included in Level 3 of the fair value hierarchy.
Other Assets
Other assets measured at fair value mainly consist of securities received as collateral that may be sold or repledged under securities lending transactions. The securities received as collateral under lending transactions mainly consist of certain Japanese and foreign government bonds which are valued using the valuation techniques previously described in the section entitled “Trading Accounts Assets and Liabilities—Trading Account Securities” above.
Obligations to Return Securities Received as Collateral
Obligations to return securities received as collateral under securities lending transactions included in Other liabilities are measured at the fair values of the securities received as collateral. The securities received as collateral consist primarily of certain Japanese and foreign government bonds, whose fair values are measured using the valuation techniques described in the “Trading Account Assets and Liabilities—Trading Account Securities” above.
Other Short-term Borrowings and Long-term Debt
Certain short-term borrowings and long-term debt are measured at fair value due to the election of the fair value option. The fair value of these instruments are measured principally based on the discounted cash flows. Where the inputs into the valuation techniques are mainly based on observable inputs, these instruments are classified in Level 2 of the fair value hierarchy. Where significant inputs are unobservable, they are classified in Level 3 of the fair value hierarchy.
Market Valuation Adjustments
Counterparty credit risk adjustments are made to certain financial assets such as over-the-counter derivatives to factor in counterparty credit exposure. As not all counterparties have the same credit risk, it is necessary in calculating credit risk adjustments, to take into account probability of a default event occurring for each counterparty, which is primarily derived from observed or estimated spreads on credit default swaps. In addition, the counterparty credit risk adjustment takes into account the effect of credit risk mitigation such as pledged collateral and the legal right of offset with the counterparty.
Funding valuation adjustment (“FVA”) represents the adjustment to reflect the impact of uncollateralized funding. The FVA is calculated using the MUFG’s market funding spread and the funding exposure of any uncollateralized component of the over-the-counter derivative instrument. The MUFG Group’s FVA framework incorporates key inputs, such as the expected future funding requirements arising from the MUFG Group’s positions with each counterparty and collateral arrangements, and the estimated market funding cost in the principal market, which considers the MUFG Group’s credit risk.
Liquidity adjustments are applied mainly to the instruments classified in Level 3 of the fair value hierarchy when recent observable prices of such instruments are not available or such instruments are traded in inactive or less active markets. The liquidity adjustments are based on the facts and circumstances of the markets including the availability of external quotes and the time since the latest available quote.
Model valuation adjustments such as unobservable parameter valuation adjustments may be provided when the fair values of instruments are determined based on internally developed valuation techniques. Examples of such adjustments include adjustments to the model price of certain derivatives where parameters such as correlation are unobservable. Unobservable parameter valuation adjustments are applied to mitigate the uncertainty inherent in the resulting valuation estimate.
Investments in Certain Entities That Calculate Net Asset Value per Share
The MUFG Group has interests in investment funds mainly private equity funds, and real estate funds that are measured at fair value on a recurring or nonrecurring basis.
Private equity funds have specific investment objectives in connection with their acquisition of equity interests, such as providing financing and other support to start-up businesses, medium and small entities in a particular geographical area, and to companies with certain technology or companies in a high-growth industry. Generally, these investments cannot be redeemed with the funds, and the return of invested capital and its gains are derived from distributions received upon the liquidation of the underlying assets of the fund, the timing of which is uncertain.
Real estate funds invest globally and primarily in real estate companies, debt recapitalizations and direct property. These investments are generally not redeemable with the funds. Distributions from each fund will be received as the underlying investments of the funds are liquidated, the timing of which is uncertain.
Assets and Liabilities Measured at Fair Value on a Recurring Basis
The following tables present the financial instruments carried at fair value by level within the fair value hierarchy as of March 31, 2022 and 2023:
At March 31, 2022Level 1Level 2Level 3Fair Value
 (in millions)
Assets    
Trading account assets:    
Trading securities(1)
¥17,170,976 ¥13,998,654 ¥797,997 ¥31,967,627 
Debt securities
Japanese national government and Japanese government agency bonds7,927,707 344,034 — 8,271,741 
Japanese prefectural and municipal bonds— 132,097 — 132,097 
Foreign government and official institution bonds7,606,345 471,163 1,711 8,079,219 
Corporate bonds3,198 2,664,869 683 2,668,750 
Residential mortgage-backed securities— 6,792,386 — 6,792,386 
Commercial mortgage-backed securities— 7,402— 7,402
Asset-backed securities— 1,210,875 315,231 1,526,106 
Other debt securities— — 313,166 313,166 
Commercial paper— 1,271,921 — 1,271,921 
Equity securities(2)
1,633,726 1,103,907 167,206 2,904,839 
Trading derivative assets201,860 10,204,531 115,040 10,521,431 
Interest rate contracts121,584 5,268,790 54,309 5,444,683 
Foreign exchange contracts2,514 4,788,739 9,560 4,800,813 
Equity contracts77,762 47,207 25,979 150,948 
Commodity contracts— 88 21,984 22,072 
Credit derivatives— 99,707 2,808 102,515 
Other(8)
400400
Investment securities:
Available-for-sale debt securities32,672,696 12,912,810 212,936 45,798,442 
Japanese national government and Japanese government agency bonds30,989,319 3,338,445 — 34,327,764 
Japanese prefectural and municipal bonds— 4,146,144 — 4,146,144 
Foreign government and official institution bonds1,683,377 936,076 11,890 2,631,343 
Corporate bonds— 1,087,059 3,089 1,090,148 
Residential mortgage-backed securities— 900,392 15 900,407 
Asset-backed securities— 1,464,041 124,379 1,588,420 
Other debt securities— 30,016 73,563 103,579 
Commercial paper1,010,6371,010,637
Equity securities4,834,102 152,041 55,883 5,042,026 
Marketable equity securities4,834,102 152,041 — 4,986,143 
Nonmarketable equity securities(4)
— — 55,883 55,883 
Other(5)
1,434,046 38,574 4,912 1,477,532 
Assets held for sale421,450 2,791,372 78,521 3,291,343 
Investment securities409,618 2,713,377 65,262 3,188,257 
Other11,832 77,995 13,259 103,086 
Total¥56,735,130 ¥40,097,982 ¥1,265,289 ¥98,098,401 
At March 31, 2022Level 1 Level 2 Level 3 Fair Value
 (in millions)
Liabilities       
Trading account liabilities:       
Trading securities sold, not yet purchased¥57,371 ¥2,455 ¥— ¥59,826 
Trading derivative liabilities217,570 10,697,699 43,951 10,959,220 
Interest rate contracts19,841 5,615,033 16,816 5,651,690 
Foreign exchange contracts4,017 4,901,054 2,097 4,907,168 
Equity contracts193,712 80,806 2,559 277,077 
Commodity contracts— — 22,029 22,029 
Credit derivatives— 100,806 79 100,885 
Other(8)
371371
Obligation to return securities received as collateral(6)
6,670,482 155,733 — 6,826,215 
Other(7)
— 525,135 16,463 541,598 
Liabilities held for sale852 50,744 1,603 53,199 
Other852 50,744 1,603 53,199 
Total¥6,946,275 ¥11,431,766 ¥62,017 ¥18,440,058 
At March 31, 2023Level 1Level 2Level 3Fair Value
 (in millions)
Assets    
Trading account assets:    
Trading securities(1)
¥19,098,208 ¥12,746,415 ¥1,182,319 ¥33,026,942 
Debt securities
Japanese national government and Japanese government agency bonds6,092,523 329,502 — 6,422,025 
Japanese prefectural and municipal bonds— 279,168 — 279,168 
Foreign government and official institution bonds11,760,274 493,691 1,168 12,255,133 
Corporate bonds3,965 2,252,424 — 2,256,389 
Residential mortgage-backed securities— 4,978,709 — 4,978,709 
Commercial mortgage-backed securities— 4,627— 4,627
Asset-backed securities— 1,210,381 668,911 1,879,292 
Other debt securities— — 334,124 334,124 
Commercial paper— 1,931,569 — 1,931,569 
Equity securities(2)
1,241,446 1,266,344 178,116 2,685,906 
Trading derivative assets84,406 12,674,978 142,343 12,901,727 
Interest rate contracts40,013 7,311,689 93,833 7,445,535 
Foreign exchange contracts3,909 5,258,511 13,714 5,276,134 
Equity contracts40,484 28,617 20,659 89,760 
Commodity contracts— 17 9,908 9,925 
Credit derivatives— 76,144 3,801 79,945 
Other(8)
— — 428 428 
Trading loans(3)
— 13,820— 13,820
Investment securities:
Available-for-sale debt securities25,236,359 10,250,511 253,932 35,740,802 
Japanese national government and Japanese government agency bonds23,292,055 2,754,548 — 26,046,603 
Japanese prefectural and municipal bonds— 2,759,941 — 2,759,941 
Foreign government and official institution bonds1,944,304 978,438 — 2,922,742 
Corporate bonds— 1,056,191 1,970 1,058,161 
Residential mortgage-backed securities— 1,110,239 15 1,110,254 
Asset-backed securities— 1,247,377 182,938 1,430,315 
Other debt securities— 343,777 69,009 412,786 
Equity securities4,362,017 101,576 74,761 4,538,354 
Marketable equity securities4,362,017 101,576 — 4,463,593 
Nonmarketable equity securities(4)
— — 74,761 74,761 
Other(5)
1,535,446 848,596 92,251 2,476,293 
Total¥50,316,436 ¥36,635,896 ¥1,745,606 ¥88,697,938 
At March 31, 2023Level 1 Level 2 
Level 3
 Fair Value
 (in millions)
Liabilities       
Trading account liabilities:       
Trading securities sold, not yet purchased¥232,287 ¥2,620 ¥— ¥234,907 
Trading derivative liabilities163,129 13,718,992 61,247 13,943,368 
Interest rate contracts85,641 8,566,043 45,204 8,696,888 
Foreign exchange contracts1,679 5,013,909 2,369 5,017,957 
Equity contracts75,809 48,953 3,731 128,493 
Commodity contracts— — 9,817 9,817 
Credit derivatives— 90,087 62 90,149 
Other(8)
— — 64 64 
Obligation to return securities received as collateral(6)
6,664,578 158,763 68,204 6,891,545 
Other(7)
— 313,482 73,663 387,145 
Total¥7,059,994 ¥14,193,857 ¥203,114 ¥21,456,965 
Notes:
(1)Includes securities measured under the fair value option.
(2)Excludes certain investments valued at net asset value of private equity funds whose fair values were ¥179,278 million and ¥225,972 million at March 31, 2022 and 2023, respectively. The amounts of unfunded commitments related to these private equity funds were ¥110,360 million and ¥172,562 million at March 31, 2022 and 2023, respectively.
(3)Includes loans measured under the fair value option.
(4)Excludes certain investments valued at net asset value of real estate funds and private equity and other funds whose fair values at March 31, 2022 were ¥30,142 million and ¥39,462 million, respectively, and those at March 31, 2023 were ¥29,308 million and ¥51,458 million, respectively. The amounts of unfunded commitments related to these real estate funds and private equity and other funds at March 31, 2022 were ¥1,011 million and nil, respectively, and those at March 31, 2023 were ¥1,305 million and nil, respectively.
(5)Mainly comprises securities received as collateral that may be sold or repledged under securities lending transactions.
(6)Included in Other liabilities.
(7)Mainly includes other short-term borrowings, long-term debt, bifurcated embedded derivatives carried at fair value.
(8)Includes certain derivatives such as earthquake derivatives.


Changes in Level 3 Recurring Fair Value Measurements
The following tables present a reconciliation of the assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the fiscal years ended March 31, 2022 and 2023. The determination to classify a financial instrument within Level 3 is based upon the significance of the unobservable inputs to overall fair value measurement. However, Level 3 financial instruments typically include, in addition to the unobservable or Level 3 input, observable inputs (inputs that are actively quoted and can be validated to external sources). Accordingly, the gains and losses in the tables below include changes in fair value due in part to observable inputs used in the valuation techniques.
 March 31, 2021 
 
Total gains (losses)
 for the period
       March 31, 2022 Change in
 unrealized
 gains (losses)
 for
 assets and
 liabilities
 still held at
 March 31,
 2022
 
 Included
 in
 earnings
 Included
 in other
 comprehensive
 income
PurchasesIssues Sales Settlements
Transfers
 into
 Level 3(10)
Transfers out of Level 3(10)
 (in millions) 
Assets                      
Trading account assets:                      
Trading securities(1)
¥756,413 ¥41,919 (2)¥— ¥458,395 ¥— ¥(197,245)¥(262,150)¥665 ¥— ¥797,997 ¥40,113 (2)
Debt securities
Foreign government and official institution bonds1,280 287 — 31,591 — (31,432)(15)— — 1,711 47 
Corporate bonds77 (68)— 126 — (100)— 648 — 683 (69)
Residential mortgage-backed securities1,000 (2)— 97,197 — (98,176)(19)— — — — 
Asset-backed securities336,811 26,692 — 270,974 — (67,500)(251,746)— — 315,231 27,693 
Other debt securities277,635 14,179 — 21,352 — — — — — 313,166 14,179 
Equity securities139,610 831 — 37,155 — (37)(10,370)17 — 167,206 (1,737)
Trading derivatives—net25,027 23,754 (2)1,882 51 (674)— (16,312)41,076 (3,715)71,089 46,149 (2)
Interest rate contracts—net14,179 (25,977)824 — — — 9,696 39,609 (5)(838)37,493 4,410 
Foreign exchange contracts—net7,283 2,403 206 21 — — 1,833 1,467 (5,750)7,463 (1,640)
Equity contracts—net623 46,579 858 30 — — (27,543)— 2,873 23,420 42,546 
Commodity contracts—net(63)30 (6)— — — (6)— — (45)30 
Credit derivatives—net2,271 750 — — — — (292)— — 2,729 819 
Other—net(9)
734 (31)— — (674)— — — — 29 (16)
Investment securities:
Available-for-sale debt securities289,616 277 (3)25,143 236,786 — — (287,747)15,651 (66,790)212,936 12,545 (3)
Foreign government and official institution bonds16,718 — 607 5,163 — — (5,964)— (4,634)11,890 87 
Corporate bonds162 (328)68 557 — — (114)2,854 (110)3,089 (265)
Residential mortgage-backed securities15 — — — — — — — — 15 — 
Commercial mortgage-backed securities1,599 — 104 — — — (524)— (1,179)— — 
Asset-backed securities136,920 580 14,066 231,039 — — (258,226)— — 124,379 6,651 
Other debt securities134,202 25 10,298 27 — — (22,919)12,797 (8)(60,867)73,563 6,072 
Equity securities45,569 5,856 (3)— 9,899 — (3,113)— 130 (2,458)55,883 3,960 (3)
Nonmarketable equity securities45,569 5,856 — 9,899 — (3,113)— 130 (2,458)55,883 3,960 
Other18,784 (402)(7)1,049 2,369 — (4,612)(202)— (12,074)4,912 1,245 (7)
Assets held for sale— (2,589)(11)4,234 770 — — (4,247)78,750 — 76,918 1,461 (11)
Investment securities— (963)3,791 — — (4,247)66,680 — 65,262 5,737 
Other— (1,626)443 769 — — — 12,070 — 11,656 (4,276)
Total¥1,135,409 ¥68,815 ¥32,308 ¥708,270 ¥(674)¥(204,970)¥(570,658)¥136,272 ¥(85,037)¥1,219,735 ¥105,473 
Liabilities
Other¥(2,212)¥8,315 (4)¥(3,080)¥— ¥36,535 ¥— ¥(19,361)¥5,364 (6)¥1,372 (6)¥16,463 ¥15,532 (4)
Total¥(2,212)¥8,315 ¥(3,080)¥— ¥36,535 ¥— ¥(19,361)¥5,364 ¥1,372 ¥16,463 ¥15,532 
 March 31, 2022 
 
Total gains (losses)
 for the period
 Purchases Issues  Sales  Settlements  Transfers
 into
 Level 3
 Transfers
 out of
 Level 3
 March 31, 2023 Change in
 unrealized
 gains (losses)
 for assets
 and
 liabilities
 still held at
 March 31,
 2023
 
 
Included
 in
 earnings and retained earnings(12)
 Included
 in other
 comprehensive
 income
 (in millions) 
Assets                      
Trading account assets:                      
Trading securities(1)
¥797,997 ¥50,044 (2)¥— ¥387,100 ¥— ¥(21,409)¥(30,468)¥— ¥(945)¥1,182,319 ¥43,990 (2)
Debt securities
Foreign government and official institution bonds1,711 16 — 5,718 — (5,765)(250)— (262)1,168 (35)
Corporate bonds683 — — — — — — — (683)— — 
Asset-backed securities315,231 17,132 — 354,978 — (15,636)(2,794)— — 668,911 15,749 
Other debt securities313,166 21,297 — 8,128 — — (8,467)— — 334,124 20,646 
Equity securities167,206 11,599 — 18,276 — (8)(18,957)— — 178,116 7,630 
Trading derivatives—net71,089 (2,045)(2)1,138 612 (334)— (17,198)55,211 (27,377)81,096 45,862 (2)
Interest rate contracts—net37,493 (27,947)297 — — — 10,932 55,243 (5)(27,389)(5)48,629 10,779 
Foreign exchange contracts—net7,463 8,210 86 — — — (4,484)(32)102 11,345 7,877 
Equity contracts—net23,420 16,190 758 19 — — (23,369)— (90)16,928 25,646 
Commodity contracts—net(45)153 (3)— — — (14)— — 91 153 
Credit derivatives—net2,729 1,273 — — — — (263)— — 3,739 1,303 
Other—net(9)
29 76 — 593 (334)— — — — 364 104 
Investment securities:
Available-for-sale debt securities212,936 (1,303)(3)16,357 301,283 — — (272,638)1,405 (4,108)253,932 2,094 (3)
Foreign government and official institution bonds11,890 — (925)128 — — (11,093)— — — — 
Corporate bonds3,089 (164)142 1,823 — — (67)1,255 (4,108)1,970 147 
Residential mortgage-backed securities15 — — — — — — — — 15 — 
Asset-backed securities124,379 (1,174)14,406 296,645 — — (251,318)— — 182,938 (823)
Other debt securities73,563 35 2,734 2,687 — — (10,160)150 — 69,009 2,770 
Equity securities55,883 712 (3)345 18,963 — (2,682)(806)3,411 (1,065)74,761 161 (3)
Nonmarketable equity securities55,883 712 345 18,963 — (2,682)(806)3,411 (1,065)74,761 161 
Other4,912 61 (7)(21)90,986 — — (5,612)1,925 — 92,251 61 (7)
Assets held for sale 76,918 992 (11)9,263 1,620 — (77,390)(11,403)— — — — 
Investment securities65,262 (3,619)7,156 297 — (56,292)(12,804)— — — — 
Other11,656 4,611 2,107 1,323 — (21,098)1,401 — — — — 
Total¥1,219,735 ¥48,461 ¥27,082 ¥800,564 ¥(334)¥(101,481)¥(338,125)¥61,952 ¥(33,495)¥1,684,359 ¥92,168 
Liabilities
Obligation to return securities
received as collateral
¥— ¥— ¥— ¥— ¥73,595 ¥— ¥(5,391)¥— ¥— ¥68,204 ¥— 
Other16,463 35,755 (4)(3,879)— 53,887 — (36,792)72,173 (6)(192)73,663 43,066 (4)
Total¥16,463 ¥35,755 ¥(3,879)¥— ¥127,482 ¥— ¥(42,183)¥72,173 ¥(192)¥141,867 ¥43,066 
Notes:
(1)Includes Trading securities measured under the fair value option.
(2)Included in Trading account losses—net and Foreign exchange gains—net.
(3)Included in Investment securities gains (losses)—net and Other comprehensive income—net.
(4)Included in Trading account losses—net and Other comprehensive income—net.
(5)Transfers into (out of) Level 3 for Interest rate contracts—net were mainly caused by changes in the impact of unobservable input to the entire fair value measurement. Unobservable input includes loss given default.
(6)Transfers into (out of) Level 3 for long-term debt in Other were mainly caused by the decrease (increase) in the observability of the key inputs to the valuation models and a corresponding increase (decrease) in the significance of the unobservable inputs.
(7)Included in Fees and commissions income and Other non-interest income.
(8)Transfers relate to the reclassification of certain securities.
(9)Includes certain derivatives such as earthquake derivatives.
(10)Includes the reclassification of assets and liabilities in transferred business of MUFG Union Bank to assets and liabilities held for sale.
(11)Included in Investment securities gains (losses)—net, Trading account losses—net, Fees and commissions income and Other comprehensive income—net.
(12)Included the profits and losses recognized in three months before the sale of MUFG Union Bank which were reclassified to retained earnings.
Quantitative Information about Level 3 Fair Value Measurements
The following tables present information on the valuation techniques, significant unobservable inputs and their ranges for each major category of assets and liabilities measured at fair value on a recurring basis and classified in Level 3:
At March 31, 2022
Fair value(1)
 Valuation technique Significant unobservable inputs Range 
Weighted
 average(2)
 (in millions)        
Assets         
Trading securities, Investment securities and Other assets:         
Foreign government and official institution bonds¥17,297 Return on equity methodProbability of default
0.2%~1.8%
0.5%
 Recovery rate
35.0%~70.0%
64.4%
 Market-required return on capital
10.0%
10.0%
Residential mortgage-backed securities, Commercial mortgage-backed securities and Asset-backed securities98,325 Discounted cash flowRecovery rate
100.0%
100.0%
 238,864 
Internal model(4)
Asset correlations3.0%3.0%
 Discount factor
0.6%~1.0%
0.9%
 Prepayment rate29.0%29.0%
 Probability of default
0.0%~85.4%
(3)
 Recovery rate69.9%69.9%
Other debt securities369,445 Discounted cash flowLiquidity premium
0.9%~3.2%
2.8%
 58,677 Return on equity methodProbability of default
0.1%~8.0%
0.4%
 Recovery rate
60.0%~90.0%
82.7%
 Market-required return on capital
8.0%~10.0%
9.9%
At March 31, 2022
Fair value(1)
 Valuation technique Significant unobservable inputs Range
Median(2)
 
(in millions)
      
Trading derivatives—net:       
Interest rate contracts—net35,195 Option modelCorrelation between interest rates
30.0%~62.9%
45.6%
 Correlation between interest rate and foreign exchange rate
15.3%~60.0%
41.0%
 Volatility
0.0%~100.0%
61.9%
Foreign exchange contracts—net7,463 Option modelCorrelation between interest rates
10.0%~70.0%
51.5%
 Correlation between interest rate and foreign exchange rate
0.0%~60.0%
37.4%
 Correlation between foreign exchange rates
50.0%~70.6%
66.4%
 Volatility
9.0%~21.7%
13.3%
Equity contracts—net772 Option modelCorrelation between foreign exchange rate and equity
(58.4)%~55.0%
23.1%
 Correlation between equities
2.4%~95.0%
51.4%
 Volatility
26.0%~38.0%
31.8%
 22,648 Discounted cash flowTerm of litigation
1.8 years
1.8 years
At March 31, 2023
Fair value(1)
 Valuation technique Significant unobservable inputs Range 
Weighted
 average(2)
 
(in millions)
        
Assets         
Trading securities and Investment securities:         
Residential mortgage-backed securities and Asset-backed securities¥101,014 Discounted cash flowRecovery rate
100.0%
100.0%
 591,515 
Internal model(4)
Asset correlations3.0%3.0%
 Discount factor
2.0%~2.3%
2.0%
 Prepayment rate13.1%13.1%
 Probability of default
0.0%~99.0%
(3)
 Recovery rate72.2%72.2%
Other debt securities385,046 Discounted cash flowLiquidity premium
0.9%~3.2%
2.8%
     
At March 31, 2023
Fair value(1)
 Valuation technique Significant unobservable inputs Range 
Median(2)
 
(in millions)
        
Trading derivatives—net:         
Interest rate contracts—net48,209 Option modelCorrelation between interest rates
30.0%~60.6%
44.4%
 Correlation between interest rate and foreign exchange rate
2.0%~60.0%
36.6%
 Volatility
70.3%~106.7%
80.1%
Foreign exchange contracts—net11,345 Option modelCorrelation between interest rates
30.0%~70.0%
50.6%
 Correlation between interest rate and foreign exchange rate
14.3%~60.0%
36.8%
 Correlation between foreign exchange rates
50.0%~70.6%
66.4%
 Volatility
10.6%~23.0%
15.6%
Equity contracts—net3,316 Option modelCorrelation between foreign exchange rate and equity
(58.4)%~55.0%
15.0%
 Correlation between equities
5.6%~95.0%
54.1%
 Volatility
28.0%~37.0%
32.2%
 13,612 Discounted cash flowTerm of litigation
0.1 years~1.0 year
0.5 years
Notes:
(1)The fair value as of March 31, 2022 and 2023 excludes the fair value of investments valued using vendor prices.
(2)Weighted average is calculated by weighing each input by the relative fair value of the respective financial instruments for investment securities. Median is used for derivative instruments.
(3)See “Probability of default” in “Changes in and range of unobservable inputs.”
(4)For further detail of Internal model, refer to the last paragraph of “Trading Account Assets and Liabilities—Trading Account Securities.”

Changes in and range of unobservable inputs
Probability of default—Probability of default is an estimate of the likelihood that the default event will occur and the MUFG Group will be unable to collect the contractual amounts. A significant increase (decrease) in the default rate would have resulted in a significant decrease (increase) in a fair value through a decrease (increase) in the estimated cash flows. Probability of default used in internal model of Residential mortgage-backed securities, Commercial mortgage-backed securities and Asset-backed securities represents that of underlying assets, whereas probability of default used in other valuation techniques represents the counterparty default risks, determined through the MUFG Group’s credit rating system.
The wide range of probability of default used in the internal model of Residential mortgage-backed securities, Commercial mortgage-backed securities and Asset-backed securities is mainly caused by Asset-backed securities. Asset-backed securities have a large number of underlying loans, mainly corporate loans, in several industries. The MUFG Group primarily makes investments in the senior tranches of such securities, with no investments in the equity portion. Thus, the MUFG Group’s investments have higher priority of payments than mezzanine and equity and even if some of underlying loans become default, the MUFG Group may still be able to receive the full contractual payments.
Discount factor and Liquidity premium—Discount factor and liquidity premium are adjustments to discount rates to reflect uncertainty of cash flows and liquidity of the instruments. When recent prices of similar instruments are unobservable in inactive or less active markets, discount rates are adjusted based on the facts and circumstances of the markets including the availability of quotes and the time since the latest available quotes. A significant increase (decrease) in discount rate would have resulted in a significant decrease (increase) in a fair value.
Recovery rate and Prepayment rate—Recovery rate is the proportion of the total outstanding balance of a bond or loan that is expected to be collected in a liquidation scenario. For many debt securities (such as asset-backed securities), there is no directly observable market input for recovery, but indications of recovery levels are available from third-party pricing services. The assumed recovery of a security may differ from its actual recovery that will be observable in the future. Prepayment rate represents the proportion of principal that is expected to be paid prematurely in each period on a security or pool of securities. Prepayment rates change the future cash flows for the investor and thereby change the fair value of the security. Recovery rate and prepayment rate would affect estimation of future cash flows to a certain extent and changes in these inputs could have resulted in a significant increase or decrease in fair value.
Volatility—Volatility is a measure of the speed and severity of market price changes and is a key factor in pricing. Typically, instruments can become more expensive if volatility increases. A significant increase (decrease) in volatility would cause a significant increase (decrease) in the value of an option resulting in the significant increase (decrease) in fair value.
The level of volatility generally depends on the tenor of the underlying instrument and the strike price or level defined in the contract. Volatilities for certain combinations of tenor and strike price are not observable. The volatility inputs used to estimate fair value of interest rate contracts are distributed throughout the range.
Correlation—Correlation is a measure of the relationship between the movements of two variables (i.e., how the change in one variable influences a change in the other variables). A variety of correlation-related assumptions are required for a wide range of instruments including foreign government and official institution bonds, asset-backed securities, corporate bonds, derivatives and certain other instruments. In most cases, correlations used are not observable in the market and must be estimated using historical information. Changes in correlation inputs can have a major impact, favorable or unfavorable, on the value of an instrument, depending on its nature. In addition, the wide range of correlation inputs are primarily due to the complex and unique nature of these instruments. There are many different types of correlation inputs, including cross-asset correlation (such as correlation between interest rate and equity), and same-asset correlation (such as correlation between interest rates). Correlation levels are highly dependent on market conditions and could have a relatively wide range of levels within or across asset classes.
For interest rate contracts and foreign exchange contracts, the diversity in the portfolio held by the MUFG Group is reflected in wide ranges of correlation, as the fair values of transactions with a variety of currencies and tenors are determined using several foreign exchange and interest rate curves. For equity derivative contracts, the wide range of correlation between interest rate and equity is primarily due to the large number of correlation pairs with different maturities of contracts. For credit derivative contracts, the wide range of correlation between underlying assets is primarily due to factors such as reference assets with different maturities, capital structure subordinations, and credit quality.
Term of litigation—Term of litigation is the estimated period until the resolution of a certain litigation matter that relates to an issuer’s restricted shares (“Covered Litigation”) that the MUFG Group purchased, which is referenced in certain swap transactions.
These swaps are valued using a discounted cash flow methodology and are dependent upon the final resolution of the Covered Litigation. The settlement timing of the Covered Litigation is not observable in the market, therefore the estimated term is classified as a level 3 input.
The restricted shares which the MUFG Group purchased will be convertible to listed shares of the issuer at the end of the Covered Litigation. The restricted shares will be diluted dependent upon the settlement amount of the Covered Litigation and the dilution of the restricted shares is accomplished through an adjustment to the conversion rate of the restricted shares. In order to hedge the reduction of the conversion rate, the MUFG Group entered into certain swaps with the seller which references the conversion rate. The value generated by these trades is subject to the ultimate term of the issuer’s litigation, subject to a minimum term referenced within the trade contracts.
Market-required return on capital—Market-required return on capital is the return on capital expected by the secondary market. A significant increase (decrease) in the market-required return on capital would have resulted in a significant decrease (increase) in a fair value of a financial asset.
Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis
Certain assets and liabilities may be measured at fair value on a nonrecurring basis in periods subsequent to their initial recognition. These assets are subject to fair value adjustments that result from the application of the lower of cost or fair value accounting, write-downs of individual assets or the measurement alternative for nonmarketable equity securities. The following table presents the carrying value of assets measured at fair value on a nonrecurring basis by level within the fair value hierarchy as of March 31, 2022 and 2023:
 20222023
 Level 1 Level 2 Level 3 
Total
 carrying value
 Level 1 Level 2 Level 3 
Total
 carrying value
 (in millions)
Assets(3)
               
Investment securities(1)(2)
¥— ¥9,839 ¥11,158 ¥20,997 ¥— ¥13,366 ¥13,271 ¥26,637 
Loans2,175 3,153 236,622 241,950 1,917 3,388 611,055 616,360 
Loans held for sale— — 42,994 42,994 — — 439,361 439,361 
Collateral dependent loans2,175 3,153 193,628 198,956 1,917 3,388 171,694 176,999 
Premises and equipment— — 17,301 17,301 — — 11,835 11,835 
Intangible assets— — 359 359 — — 309 309 
Goodwill— — — — — — 184,364 184,364 
Other assets11,880 — 17,282 29,162 178,592 — 29,003 207,595 
Investments in equity method investees(1)
11,880 — 1,035 12,915 178,592 — 12,472 191,064 
Other— — 16,247 16,247 — — 16,531 16,531 
Assets held for sale— — 255,002 255,002 — — — — 
Loans held for sale— — 255,002 255,002 — — — — 
Total¥14,055 ¥12,992 ¥537,724 ¥564,771 ¥180,509 ¥16,754 ¥849,837 ¥1,047,100 
Notes:
(1)Excludes certain investments valued at net asset value of ¥26,644 million and ¥33,595 million at March 31, 2022 and 2023, respectively. The unfunded commitments related to these investments are ¥22,197 million and ¥23,029 million at March 31, 2022 and 2023, respectively. These investments are in private equity funds.
(2)Includes certain nonmarketable equity securities that are measured at fair value on a nonrecurring basis, including impairment and observable price change for nonmarketable equity securities measured under the measurement alternative.
(3)In addition to the above table, the assets and liabilities of MUFG Union Bank, which were transferred to U.S. Bancorp, were reclassified as held for sale. As a result, the disposal group was measured at fair value less expected costs to sell which was lower than its carrying amount. The amount of the fair value is ¥1,992,632 million as of March 31, 2022 and classified in Level 3 based on the transaction's expected consideration.
The following table presents losses (gains) recorded as a result of changes in the fair value of assets measured at fair value on a nonrecurring basis for the fiscal years ended March 31, 2022 and 2023:
 2022
2023(2)
 
(in millions)
Investment securities¥1,232 ¥3,580 
Loans30,638 73,282 
Loans held for sale1,893 32,146 
Collateral dependent loans28,745 41,136 
Premises and equipment5,701 5,293 
Intangible assets10,412 3,650 
Goodwill— 33,553 
Other assets27,268 74,470 
Investments in equity method investees6,949 58,061 
Other20,319 16,409 
Assets held for sale3,165 282,540 
Loans held for sale3,165 282,540 
Total(1)
¥78,416 ¥476,368 
Notes:
(1)In addition to the above table, the assets and liabilities of MUFG Union Bank, which were transferred to U.S. Bancorp, were reclassified as held for sale. As a result, the disposal group was measured at fair value less expected costs to sell which was lower than its carrying amount. The impairment of assets held for sale was ¥134,141 million for the fiscal year ended March 31, 2022. See Note 2 for further information.
(2)The profits and losses which were recognized in the three months before the sale of MUFG Union Bank were reclassified to retained earnings.


Investment securities for the year ended March 31, 2022 and 2023 primarily include nonmarketable equity securities measured under the measurement alternative. See Note 3 for the details of the measurement alternative.
Loans include loans held for sale and collateral dependent loans. Loans held for sale are recorded at the lower of cost or estimated fair value. The fair value of the loans held for sale is based on secondary market prices, recent transactions or discounted cash flows. These loans are principally classified in Level 3 of the fair value hierarchy, and when quoted prices are available but not traded actively, such loans held for sale are classified in Level 2 of the fair value hierarchy. Collateral dependent loans are measured at fair value of the underlying collateral. Collateral is comprised mainly of real estate and exchange-traded equity securities. The MUFG Group maintains an established process for internally determining the fair value of real estate, using the following valuation techniques and assumptions. Collateral dependent loans that are measured based on underlying real estate collateral are classified in Level 3 of the fair value hierarchy.
Replacement cost approach. The replacement cost approach is primarily used for buildings and the land they are built on. This approach calculates the fair value of the collateral using the replacement cost of the property as of the valuation date. Replacement cost tables and useful life tables used for this approach are developed by subsidiaries of MUFG.
Sales comparison approach. The sales comparison approach is mainly used for land. The fair value of the collateral located in Japan is based on Japanese government official land prices and standard land prices, considering the results of comparison analysis between the official roadside value which is used for tax purposes and the related government official land and standard land prices.
Income approach. The income approach is, as a general rule, applied to all rental properties based on the highest and best use concept. This approach calculates the fair value of the collateral using expected future cash flows. In this approach, the expected annual net operating income is discounted using the related capitalization yield. The significant assumptions within the income approach are the expected annual net operating income and capitalization yield. The expected annual net operating income is estimated based on rental income of the property. The capitalization yield is determined based on the
location and use of the property by subsidiaries of MUFG. The capitalization yield may be adjusted to reflect the trends in locations, occupancy rates and rent level and other factors.
Premises and equipment consist of those assets which were written down to fair value. The fair values are determined based on prices obtained from an appraiser or discounted cash flows. These impaired premises and equipment are classified as Level 3 of the fair value hierarchy.
Intangible assets consist of those assets which were written down to fair value. The fair values are determined based on discounted cash flows. These impaired intangible assets are classified as Level 3 of the fair value hierarchy.
Other assets mainly consist of investments in equity method investees which were written down to fair value due to impairment and loans held for sale which will be transferred to U.S. Bancorp and were written down to fair value. When investments in equity method investees are marketable equity securities, the fair values are determined based on quoted prices. Impaired investments in equity method investees which are marketable equity securities are classified in either Level 1 or Level 2 of the fair value hierarchy. When investments in equity method investees are nonmarketable equity securities, the fair values are determined using the same methodologies as those for impaired nonmarketable equity securities described above. Impaired investments in equity method investees which are nonmarketable equity securities are classified in Level 3 of the fair value hierarchy.
Fair Value Option
The MUFG Group elected the fair value option for foreign currency-denominated debt securities and equity securities held by MUFG Bank and Mitsubishi UFJ Trust and Banking. The election was made to mitigate accounting mismatches related to fluctuations of foreign exchange rates by allowing the gains and losses on translation of these securities to be included in current earnings. The gains and losses on translation of debt securities without the fair value option, are included in OCI, while the gains and losses on translation of foreign currency-denominated financial liabilities are included in current earnings.
The MUFG Group also elected the fair value option for certain financial instruments held by Mitsubishi UFJ Securities Holdings’s foreign subsidiaries because those financial instruments are managed on a fair value basis, and these exposures are considered to be trading-related positions. These financial assets are included in Other assets. These financial liabilities are mainly included in Other short-term borrowings and Long-term debt. Unrealized gains and losses on such financial instruments are recognized in the accompanying consolidated statements of operations.
The following table presents the gains or losses recorded for the fiscal years ended March 31, 2021, 2022 and 2023 related to the eligible instruments for which the MUFG Group elected the fair value option:
 202120222023
 
Trading
 account
 profits (losses)
 
Foreign
 exchange
 gains (losses)
 
Total
 changes in
 fair value
 
Trading
 account
 profits (losses)
 
Foreign
 exchange
 gains (losses)
 
Total
 changes in
 fair value
 
Trading
 account
 profits (losses)
 
Foreign
 exchange
 gains (losses)
 
Total
 changes in
 fair value
 
(in millions)
Financial assets:                 
Trading account securities¥(370,238)¥723,505 ¥353,267 ¥(984,605)¥1,752,995 ¥768,390 ¥(1,180,311)¥1,369,071 ¥188,760 
Total¥(370,238)¥723,505 ¥353,267 ¥(984,605)¥1,752,995 ¥768,390 ¥(1,180,311)¥1,369,071 ¥188,760 
Financial liabilities:
Other short-term borrowings(1)
¥(6,484)¥— ¥(6,484)¥5,552 ¥— ¥5,552 ¥(3,626)¥— ¥(3,626)
Long-term debt(1)
1,523 — 1,523 50,082 — 50,082 40,944 — 40,944 
Total¥(4,961)¥— ¥(4,961)¥55,634 ¥— ¥55,634 ¥37,318 ¥— ¥37,318 
Note:
(1)Changes in the value attributable to the instrument-specific credit risk related to those financial liabilities were not material.
The following table presents the differences between the aggregate fair value and the aggregate remaining contractual principal balance outstanding as of March 31, 2022 and 2023 for long-term debt instruments for which the fair value option has been elected:
 20222023
 
Remaining
 aggregate
 contractual
 amounts
 outstanding
 Fair value 
Fair value
 over (under)
 remaining
 aggregate
 contractual
 amounts
 outstanding
 
Remaining
 aggregate
 contractual
 amounts
 outstanding
 Fair value 
Fair value
 over (under)
 remaining
 aggregate
 contractual
 amounts
 outstanding
 
(in millions)
Financial liabilities:           
Long-term debt¥511,851 ¥483,051 ¥(28,800)¥501,982 ¥431,338 ¥(70,644)
Total¥511,851 ¥483,051 ¥(28,800)¥501,982 ¥431,338 ¥(70,644)
Interest income and expense related to the assets and liabilities for which the fair value option is elected are measured based on the contractual rates and dividend income related to these assets are recognized when the shareholder right to receive the dividend is established. These interest income and expense and dividend income are reported in the accompanying consolidated statements of operations as either interest income or expense, depending on the nature of the related asset or liability.
Estimated Fair Value of Financial Instruments
The following is a summary of carrying amounts and estimated fair values by level within the fair value hierarchy of financial instruments which are not carried at fair value on a recurring basis in the accompanying consolidated balance sheets as of March 31, 2022 and 2023:
 
Carrying
 amount
 Estimated fair value
At March 31, 2022 Total Level 1 Level 2 Level 3
 (in billions)
Financial assets:         
Cash and due from banks¥50,972 ¥50,972 ¥50,972 ¥— ¥— 
Interest-earning deposits in other banks58,848 58,848 — 58,848 — 
Call loans and funds sold1,316 1,316 — 1,316 — 
Receivables under resale agreements12,503 12,503 — 12,503 — 
Receivables under securities borrowing transactions4,496 4,496 — 4,496 — 
Investment securities4,595 4,606 1,758 460 2,388 
Loans, net of allowance for credit losses(1)
111,669 112,391 245 112,144 
Other financial assets(2)
9,207 9,207 — 9,207 — 
Financial liabilities:
Deposits
Non-interest-bearing¥36,496 ¥36,496 ¥— ¥36,496 ¥— 
Interest-bearing188,112 188,080 — 188,080 — 
Total deposits224,608 224,576 — 224,576 — 
Call money and funds purchased2,416 2,416 — 2,416 — 
Payables under repurchase agreements27,726 27,726 — 27,726 — 
Payables under securities lending transactions1,022 1,022 — 1,022 — 
Due to trust account and other short-term borrowings22,728 22,728 — 22,728 — 
Long-term debt34,245 33,974 — 33,974 — 
Other financial liabilities7,560 7,560 — 7,560 — 
 
Carrying
 amount
 Estimated fair value
At March 31, 2023 Total Level 1 Level 2 Level 3
 (in billions)
Financial assets:         
Cash and due from banks¥60,051 ¥60,051 ¥60,051 ¥— ¥— 
Interest-earning deposits in other banks53,990 53,990 — 53,990 — 
Call loans and funds sold1,802 1,802 — 1,802 — 
Receivables under resale agreements14,059 14,059 — 14,059 — 
Receivables under securities borrowing transactions4,556 4,556 — 4,556 — 
Investment securities21,520 21,386 13,527 5,354 2,505 
Loans, net of allowance for credit losses(1)
118,679 118,933 263 118,668 
Other financial assets(2)
10,108 10,108 — 10,108 — 
Financial liabilities:
Deposits
Non-interest-bearing¥37,804 ¥37,804 ¥— ¥37,804 ¥— 
Interest-bearing197,500 197,573 — 197,573 — 
Total deposits235,304 235,377 — 235,377 — 
Call money and funds purchased3,438 3,438 — 3,438 — 
Payables under repurchase agreements40,132 40,132 — 40,132 — 
Payables under securities lending transactions1,138 1,138 — 1,138 — 
Due to trust account and other short-term borrowings14,260 14,260 — 14,260 — 
Long-term debt38,704 37,928 — 37,928 — 
Other financial liabilities9,595 9,595 — 9,595 — 
Notes:
(1)Includes loans held for sale and collateral dependent loans measured at fair value on a nonrecurring basis. Refer to “Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis” for the details of the level classification.
(2)Excludes investments in equity method investees of ¥3,067 billion and ¥3,482 billion at March 31, 2022 and 2023, respectively.
The fair values of certain off-balance sheet financial instruments held for purposes other than trading, including commitments to extend credit and commercial letters of credit, are estimated using the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the credit quality. The aggregate fair value of such instruments at March 31, 2022 and 2023 was not material.