Fundamentals of Islamic Banking and Finance

Course details

This is a comprehensive programme designed to give delegates an all round understanding of the issues involved in Risk management for Islamic banking.

COURSE OBJECTIVE

• Understand the principles of Islamic finance
• Understand Islamic banks: why, how and for what?
• Introduce the Islamic financial products,
• Discuss and contrast Islamic banking with conventional banking
• Understand Islamic finance Application with samples of contracts
• Understand the foundation of Islamic securitization
• Look into the Islamic investment funds and their potentials

The course specifically targets:

• Investment Bankers
• Corporate and Commercial Bankers
• Corporate Financiers
• Private Bankers
• Analysts
• Asset managers
• Risk Management Managers
• Consultants
• Lawyers
• Investment Advisors
• Regulators
• Auditors and compliance professionals

COURSE OUTLINE

Day 1

• Foundations of Islamic finance
  • Islamic Economics
  • Islamic Economic System:
  • Shari’ah and Islamic Finance
    • Objectives of Shari’ah
    • Scope of Shari’ah
• Banking practices in the history of the Islamic society
• Development of contemporary Islamic banks
• Definition and nature of an Islamic bank
• Salient features of Islamic banks:
  • Commitment to Shari’ah
  • Commitment to Moral standards in financing
  • Developmental by nature
  • Commodity/service-based financing
• Comparison and contrast with conventional banks
• Characteristics of Islamic banking:
  • Comprehensive/universal banking
  • Sources of funds: partners
  • Uses of funds: commodity/serve-based financing
  • Requires exception for traditional banking laws
• Regulation of Islamic banks:
  • Supervisory authority
  • Shari’ah board (regulatory body)
• Fiscal Policy in Islamic Framework:: Objectives, Tools
• Monetary Policy in Islamic Framework:: Objectives, Tools.
• Islamic re-definition of banking services:
  • Opening current accounts
  • Collecting checks and money transfers
  • Collecting notes, bills and other IOUs
  • Buying and selling stocks for customers
  • Currency exchange
  • Issuance of letters of guarantees
  • Issuance of documentary letters of credit
  • Renting deposit boxes
  • Opening investment deposits
  • Financing operations from the pool of investment funds
• Conventional banking services not permitted in Islamic banks
  • Discounting of bonds, bills of exchange and other IOUs
  • Intermediation in buying and selling bonds
  • All operations in which interest is part

Day 2

• Finance contracts In Islamic banks
  • For funds mobilization:
    • Musharakah
    • Mudarabah
    • Loan
  • For funds utilization
    • Sale
    • Sharing
    • Leasing
• Islamic finance contracts
• Principles of Financial Contracts in Shari’ah
• Categories of Financial contracts in Shari’ah
• Currency Transactions and Riba al Fadl
• Earning Return by ownership, labor and guarantee
• Islamic Financial intermediation
• Prohibition of Riba (interest), Gharar, gambling, sale of what you don’t own, etc.
• Comparison between Islamic financing and interest-based financing
• Shari’ah-Named Financing Contracts
  • Musharakah:
  • Mudarabah
  • Muzara’ah
  • Deferred-payment sale
  • Salam
  • leasing
• Characteristics of the Shari’ah-Named Financing
• Contracts
  • Sharing contracts:
    • Fairness and balance: No Interruption of Sharing
    • Implications of Wakalah
    • Profit per agreement and losses per capital
  • Exchange Financing Contracts
    • Social and contractual justice
    • Moral boundaries
    • Level of Disclosure
  • Lease Contracts
    • Flexibility
    • Amenability to Hybrids
  • One-Side contributory Contracts:
    • Flexibility in Conditions

Day 3

• New Approaches to Islamic financial engineering
• New financing contracts for liquidity management
  • Tawarruq
  • Reversed Murabahah
  • International Inventory Financing
• International reversed Murabahah
  • New financing contracts for corporations
  • Purchase/installment sale
  • BBA (Purchase/lease back)
  • BOT and output/revenue sharing
  • Inventory Murabahah financing
  • Three party Istisna’
• New financing contracts for government
  • Output sharing and BOT
  • Constructions of Schools
  • Build/lease operations

CERTIFICATION

On completition of the course you will receive a certificate from ASTC Dubai.