Training Course: Islamic Banking and Finance

Introduction  

In today’s world flooded with interest-based transactions, unlawful bank contracts, and investments, the need for Islamic banking is increasing. Many countries have recently seen a rise in demand for Islamic banking services. Analysts expect that the Islamic banking network will overtake the conventional banking system at the current rate of expansion in the next 8 to 10 years. Islamic Banking and Finance differ from conventional banking. How Islamic banking is consistent with the Sharia, a key element is a prohibition on collecting and paying interest. Ruling out most aspects of modern finance, it allows money to be used to trade tangible assets and business.

Course Objective

• An introduction to the basic concepts of Islamic banking and finance.
• Explain the theories and concepts of Islamic financial instruments.
• Understand and analyze finance concepts in the light of Islamic philosophy / Islamic Sharia.
• Funding mechanisms and modern techniques for Islamic economics and finance.
• Outline the challenges faced in the transformation of the finance industry as well as the economy from interest-based modes to interest-free transactions.

Course Outlines

Day 1: Basic of Islamic Banking

• Islamic Law and Jurisprudence.
• The Contract Law.
• Fundamental principles of Islamic Finance.
• Factors of Production in different economic systems.
• Prohibition of Riba in Islam.

Day 2: Economic Systems and the Emergence of Islamic Banking

• Islamic and other economic Systems.
• Factors of Production in different Economic systems.
• Islamic Appraisal of Conventional Commercial Banking.
• Islamic Alternatives.

Day 3: Deposit products and Financing Products (Equity-Based)

• Current Account Deposit.
• Saving Deposits.
• Investment Deposits.
• Trustee Partnership (Mudarabah) Facility.
• Joint Venture (Musharakah) Facility.
• Issues in Product Management.
• Areas of Application.

Day 4: Financing Products (Debt-Based)

• Deferred Payment Facility.
• Leasing (Ijara) Facility.
• Deferred Delivery Sale (Salam) Facility.
• Manufacture-Sale (Istisna) Facility.
• Recurring Sale (Istijrar) Facility.
• Benevolent Loan (Qard) Facility.
• Areas of Application.

Day 5: Fee-Based Product, Investment banking, and other Islamic Appraisals

• Letter of Guarantee.
• Other Fee-Based Services.
• Islamic Appraisal of Conventional Investment Banking.
• Islamic Appraisal of Conventional Project Finance.
• The limited liability concepts.