Repurchase agreements and securities lending transactions accounted for as secured borrowings

12 Months Ended

Mar. 31, 2020

Repurchase agreements and securities lending transactions accounted for as secured borrowings

29. Repurchase agreements and securities lending transactions accounted for as secured borrowings

The following table shows the gross amounts of liabilities associated with repurchase agreements and securities lending transactions, by remaining contractual maturity at March 31, 2019 and 2020:

	Overnight and continuous		Up to 30 days		31-90 days		Greater than 90 days		Total
	(in billions of yen)
2019
Repurchase agreements		2,596		8,537		2,403		1,104		14,640
Securities lending transactions		1,012		473		—		313		1,798
Total		3,608		9,010		2,403		1,417		16,438
2020
Repurchase agreements		6,357		5,467		4,867		1,280		17,971
Securities lending transactions		877		231		—		316		1,424
Total		7,234		5,698		4,867		1,596		19,395

The following table shows the gross amounts of liabilities associated with repurchase agreements and securities lending transactions, by class of underlying collateral at March 31, 2019 and 2020:

	Repurchase agreements		Securities lending transactions
	(in billions of yen)
2019
Japanese government bonds and Japanese local government bonds		2,118		430
Foreign government bonds and foreign agency mortgage-backed securities		11,613		396
Commercial paper and corporate bonds		223		52
Equity securities		492		902
Other		194		18
Total(Note)		14,640		1,798
2020
Japanese government bonds and Japanese local government bonds		1,790		269
Foreign government bonds and foreign agency mortgage-backed securities		15,218		359
Commercial paper and corporate bonds		273		50
Equity securities		542		730
Other		148		16
Total(Note)		17,971		1,424

Note: Amounts exceeded the gross amounts recognized in Note 28 “Offsetting of financial assets and financial liabilities” by ¥1,194 billion and ¥1,227 billion, at March 31, 2019 and 2020, respectively, which excluded the amounts relating to master netting agreements or similar agreements where the MHFG Group did not have the legal right of set-off or where uncertainty exists as to the enforceability.

The MHFG Group is required to post securities as collateral with a fair value equal to or in excess of the principal amount of the cash borrowed under repurchase agreements. For securities lending transactions, the Group receives collateral in the form of cash. These contracts involve risks, including (1) the counterparty may fail to return the securities at maturity and (2) the fair value of the securities posted may decline below the

amount of the Group’s obligation and therefore the counterparty may require additional amounts. The Group attempts to mitigate these risks by entering into transactions mainly with central counterparty clearing houses which revalue assets and perform margin maintenance activities on a regular basis, diversifying the maturities and counterparties, and using mainly highly liquid securities.