Islamic Banking: Course outline (IBF-401)

1

Introduction to Islamic Economics & Finance

• The main principles of Islamic Economics and Shariah Boundaries.
• Basic Concepts and Philosophy of Islamic Banking.
• Evolution of Islamic Banking
• International Institutions dealing with Islamic Banking.

2

• Islamic Law of Contract and Principles of trading.
• International modes and sub modes.

3

Murabaha & Masawamah

• Murabaha as Financing Mode.
• Rules of Murabaha
• Murabaha Financing Methodology
• Issues and Risks in Murabaha
• Scope and application of Murabaha with Case Studies.
• Early Adjustment and Penalties.
• Bai`Muajjal
• Masawamah

4

Shirkah/Musharaka

• Definition and classification of Musharakah
• Distribution of Profit & Loss.
• Uses, Asset Side Financing and Risks.
• Diminishing Musharakah

5

Mudarabah

• Definition & Types
• Difference in Musharakah & Mudarabah.
• Investment
• Distribution of Profit & Loss
• Role of Mudarib
• Mudarabah as Asset Based Product.
• Risks and cancellation of Mudarabah

6

Salam & Istasna

• Concepts and application.
• Salam/Salf.
• Istasna

7

Ijarah & Istijrar

• Istijrar
• Ijarah
• Mode of Financing
• Early Termination and Panalty.
• Insurance of assets

8

Mid Term

9

Concept of Takaful and status of takaful Industry

11

Islamic Finance Documentation

• Master Facility Documents
• Security Documents.
• Transaction Documents

12

Risk Management

• Definition
• Introduction of the session
• Risk dimensions.
• Islamic Ethics
• Sharia perspective of Risk Management.
• Tools
• Risks in Islamic controls

13

Trade Finance

• Islamic Trade Finance Operations & Products