Bank ABC has the following rate sensitive assets and rate sensitive liabilities on its balance sheet $($in million Kwacha$)$:

Interest Rate Sensitive Assets Interest Rate Sensitive Liabilities

Government Securities $300$ Time Deposits $610$

Loans $850$ Saving Deposits $290$

Required:

A$.$ If the interest rates rise by $2\mathrm{.}5\%,$ what is the change in net interest income assuming a parallel shift in the yield curve? $[12$ Marks$]$

B$.$ Mention any four main weaknesses of the traditional GAP analysis as a measure of interest rate risk. $[8$ Marks$]$