26.1 The tawarruq may expose the IFI to various types of risks, such as market, liquidity, credit and operational risks. These risks, which appear at various stages of transactions, may change in nature that may necessitate the establishment of a comprehensive and sound risk management infrastructure, reporting and control framework.

Source: Tawaruq Bank Negara Malaysia (BNM) Guideline 2018

Based on the above statement, answer the following questions:

d) Islamic banks under the Islamic Financial Service Board (IFSB) use Profit Sharing Investment Accounts (PSIA) to fund the Tawarruq financing. Supposed the banks are not able to provide competitive returns to PSIA holders. What are the strategies pursued by these banks to rectify the situation?

(8 marks)