Question Two MALIGU Bank Ghana Ltd is the third biggest bank in Ghana and is been in operation for over 20 years. The balance sheet of the Bank as at 30th September, 2012 is given as follows: 1 Capital and Liabilities Assets Deposits: 100,000,000 Loans @ 25% Floating rate Current accounts (Non rate sensitive) 130,000,000 Overdrafts @ 24% Floating Call Deposits @ 12% 50,000,000 floating rate 100,000,000 rate Treasury Bills @ 23% Fixed Savings Accounts @ 14% Rate 100,000,000 Floating rate 70,000,000 Government Bonds @ 22% Fixed Rate 80,000,000 Fixed deposits @ 20% Fixed rate 110,000,000 Interbank Placements @ 17% Overnight Floating rate 25,000,000 Commercial papers @ 26% fixed rate 70,000,000 Other Assets (non rate sensitive) Capital and reserves (Non rate sensitive) 40,000,000 55,000,000 + Total Assets 465,000,000 Total Capital and Liabilities 465,000,000 Required: i. What is the total annualized Net Interest Income (NII) for the bank? ii. If interest rates were to go up by 2% immediately what will be the new annualized net interest income? and what impact will this have on the Bank's net interest income and the magnitude? 111. If interest rates were go down immediately by 2% instead what will be the new interest income and what impact will this have on the Bank's net interest income and the magnitude? 10***