Notes to Consolidated Financial Statements SMFG 3. Trading Assets 4. Securities 5. Loans and Bills Discounted Trading assets at March 31, 2011 and 2010 consisted of the following: Securities at March 31, 2011 and 2010 consisted of the following: (1) Loans and bills discounted at March 31, 2011 and 2010 consisted of the following: (2) Loans and bills discounted included the following “Risk-monitored loans” stipulated in the Banking Act: *1 “Bankrupt loans” are loans, after write-off, to legally bankrupt borrowers as defined in Articles 96-1-3 and 96-1-4 of the Enforcement Ordinance No. 97 of the Japanese Corporate  Tax Law (issued in 1965) and on which accrued interest income is not recognized as there is substantial doubt about the ultimate collectability of either principal or interest  because they are past due for a considerable period of time or for other reasons.  *2 “Non-accrual loans” are loans on which accrued interest income is not recognized, excluding “Bankrupt loans” and loans on which interest payments are deferred in order to  support the borrowers’ recovery from financial difficulties. *3 “Past due loans (3 months or more)” are loans on which the principal or interest is past due for 3 months or more, excluding “Bankrupt loans” and “Non-accrual loans.” *4 “Restructured loans” are loans on which terms and conditions have been amended in favor of the borrowers (e.g., reduction of the original interest rate, deferral of interest  payments, extension of principal repayments or debt forgiveness) in order to support the borrowers’ recovery from financial difficulties, excluding “Bankrupt loans,” “Non-accrual  loans” and “Past due loans (3 months or more).” SMFG  2011 83 Millions of yen Millions of  U.S. dollars March 31 2011 2010 2011 Trading securities ................................................................................................ ¥2,817,536 ¥2,779,725 $33,885 Derivatives of trading securities ........................................................................... 3,857 1,246 47 Derivatives of securities related to trading transactions ........................................ 5,338 6,931 64 Trading-related financial derivatives .................................................................... 3,514,859 3,642,477 42,271 Other trading assets ............................................................................................. 291,305 278,307 3,503 ¥6,632,898 ¥6,708,688 $79,770 Millions of yen Millions of  U.S. dollars March 31 2011 2010 2011 Japanese government bonds$^{*1}$ .............................................................................. ¥25,934,346 ¥16,738,321 $311,899 Japanese local government bonds ......................................................................... 544,409 422,648 6,547 Japanese corporate bonds$^{*2}$ .................................................................................. 3,256,034 3,548,359 39,159 Japanese stocks$^{*1, 3, 4}$ ............................................................................................ 2,741,796 2,967,641 32,974 Other$^{*1, 3, 4}$ .......................................................................................................... 7,475,535 4,946,997 89,904 ¥39,952,123 ¥28,623,968 $480,483 Millions of yen Millions of  U.S. dollars March 31 2011 2010 2011 Bills discounted ............................................................................................... ¥ 184,822 ¥ 196,382 $ 2,223 Loans on notes ................................................................................................. 2,176,918 2,324,520 26,181 Loans on deeds ................................................................................................. 51,925,319 52,839,032 624,477 Overdrafts ....................................................................................................... 7,061,295 7,341,097 84,922 ¥61,348,355 ¥62,701,033 $737,803 Millions of yen Millions of  U.S. dollars March 31 2011 2010 2011 Risk-monitored loans: Bankrupt loans$^{*1}$.......................................................................................... ¥ 90,777 ¥ 165,131 $ 1,092 Non-accrual loans$^{*2}$ ..................................................................................... 1,031,828 1,075,782 12,409 Past due loans (3 months or more)$^{*3}$............................................................. 25,438 38,315 306 Restructured loans$^{*4}$ .................................................................................... 498,323 250,256 5,993 ¥1,646,369 ¥1,529,484 $19,800 *1 Unsecured loaned securities for which borrowers have the right to sell or pledge in the amount of ¥50,935 million ($613 million) and ¥41,826 million are included in Japanese  government bonds in Securities and in trading securities in Trading assets at March 31, 2011 and 2010, respectively. SMBC has the right to sell or pledge, some of the unsecured borrowed securities, securities under resale agreements and securities borrowed with cash collateral. Of these securities,  ¥3,032,285 million ($36,468 million) are pledged, and ¥232,420 million ($2,795 million) are held in hand at March 31, 2011. The respective amounts at March 31, 2010 were  ¥3,840,308 million and ¥133,566 million. *2 Japanese corporate bonds include private placement bonds (stipulated by Article 2-3 of the Financial Instruments and Exchange Act) which are guaranteed by banking subsidiaries in  the amount of ¥1,969,902 million ($23,691 million) and ¥2,136,145 million at March 31, 2011 and 2010, respectively. *3 Japanese stocks and other include investments in unconsolidated subsidiaries and affiliates of ¥279,829 million ($3,365 million) and ¥321,897 million at March 31, 2011 and 2010,  respectively. *4 Japanese stocks and other include investments in jointly controlled entities of ¥97,868 million ($1,177 million) and ¥94,369 million at March 31, 2011 and 2010, respectively.