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15. Reconciliation of Cash and Cash EquivalentsReconciliation between cash and due from banks in the consolidated balance sheets as of March 31, 2015 and 2016 andcash and cash equivalents in the consolidated statements of cash flows for the years then ended are as follows:Millions of YenThousands ofU.S. Dollars2015 2016 2016Cash and due from banks \410,740 \586,531 $5,205,280Deposits to banks excluding the Bank of Japan (1,564) (2,306) (20,465)Cash and cash equivalents \409,176 \584,225 $5,184,81516. Lease TransactionsAs a LesseeTangible fixed assets and intangible fixed assets include finance lease assets (mainly ATMs, information system andsoftware) of which ownership do not transfer to the lessee.As a LessorSummary of investments in lease assets as of March 31, 2015 and 2016 are as follows:Millions of YenThousands ofU.S. Dollars2015 2016 2016Gross lease receivables \24,969 \24,960 $221,512Expected residual values 1,590 1,800 15,974Unearned interest income (1,547) (1,478) (13,116)Investments in lease assets \25,012 \25,282 $224,369Maturities of gross lease receivables for finance leases as of March 31, 2016 are as follows:Year ending March 31 Millions of YenThousands ofU.S. Dollars2017 \ 8,201 $ 72,7812018 6,357 56,4162019 4,688 41,6042020 2,978 26,4282021 1,476 13,0992022 and thereafter 1,258 11,164Total \24,960 $221,51217. Financial Instruments and Related DisclosuresDisclosure of Financial Instruments(1) Policy on financial instrumentsThe Group provides financial services including banking services such as deposit-taking, lending services and others.Accordingly, the Group has the risk of fluctuation of values and earnings of financial assets and liabilities resulting fromchanges in interest rates (interest rate risk) and the risk that the Group may suffer losses on collection of principal and intereston loans due to bankruptcy or deterioration of performances of counterparties (credit risk). In addition, the Group has pricefluctuation risk associated with equity securities in addition to interest rate risk and credit risk for securities investmentoperations. The Group conducts comprehensive Asset and Liability Management (ALM) aiming at appropriate riskmanagement and maximization of earnings and, as part of ALM, employs derivative transactions.(2) Nature and risk of financial instrumentsFinancial assets held by the Group principally consist of loans to domestic customers, which are exposed to interest rate riskand credit risk arising from nonperformance of contractual obligations. The Group holds securities principally consisting ofdebt securities and equity securities which are classified into trading securities, held-to-maturity securities and other(available-for-sale) securities depending on the holding purposes. They are exposed to credit risk of issuers, interest rate riskand price fluctuation risk. Financial liabilities held by the Group principally consist of deposits accepted from domesticcustomers, which are exposed to interest rate risk. Borrowed money is exposed to liquidity risk that the Group may not beable to settle on the maturity date when the Group might not be able to utilize the market under certain environments.Derivative transactions consist of forward foreign exchange contracts, currency swaps and currency options as currencyrelated derivatives and interest rate swaps and interest rate futures as interest rate related derivatives. Interest rate swapsand forward foreign exchange contracts which qualify for hedge accounting and meet internal policy as to the application ofhedge accounting are accounted for under hedge accounting. Derivative transactions which do not meet requirements ashedge accounting are exposed to interest rate risk, price fluctuation risk, credit risk and etc.(3) Risk management system for financial instrumentsCredit risk managementCredit risk management of the Group consists of “Strict review and control on individual transactions (micro base credit riskmanagement),” “Portfolio management and appropriate administration through credit risk quantification (macro base creditrisk management)” and “Strict self-assessment and implementation of appropriate write-offs and provision” based on “Internalrating system.”23