Principles of Banking Operations Complying with Shari'a

Course details

In this course, participants will learn the fundamentals of Islamic banking, including contemporary commercial financial and investment banking service applications, products and procedures that comply with Shari’a.

Course Description:

In this course, participants will learn the fundamentals of Islamic banking, including contemporary commercial financial and investment banking service applications, products and procedures that comply with Shari’a.

Course Objectives:

• Describe the development of Islamic finance worldwide
• List the legal regulations governing Islamic banking
• Discuss the legal regulations governing sharing
• Describe the legal regulations of IJARAH
• Discuss the different types of accounts in the Islamic banking system
• Define investment funds in the Islamic banking system
• Describe the sharing of financial results in Islamic banks

Course Outline:

Module 1: The Development of Islamic Banks

• Introduction
• The development of Islamic banking
• Characteristics of Islamic banks
• Islamic banking in the world
• Islamic banking in the Arab Republic of Egypt (ARE)

Module 2: The Legal Regulations Governing Sales

• Durable goods finance (Murabha sales): definition – legal standards – the fundamentals.
• Estesnaa sales: definition – legal standards – the fundamentals.
• Tawarok sales: definition – legal standards – the fundamentals.
• Other types of sales: installment and commission

Module 3: The Legal Regulations Governing Sharing

• Sharing and its legal regulations

Module 4: The Legal Regulations of IJARAH

• The definition of housing finance (IJARAH)
• Legal standards
• Types of housing finance
• The fundamentals of IJARAH
• Cooperative Mutual funds

Module 5: Islamic Banking Services

• Current accounts
• Investment accounts
• Documentary credits
• Letters of guarantee
• Foreign exchange
• Transfers
• ATMs
• Credit cards

Module 6: Investment Funds

• Definition of investment funds.
• Management of investment funds.
• Types of investment funds.
• Mechanics of investment funds.

Module 7: Measuring and Sharing Financial Results in Islamic Banks

• Sources of revenue
• Income / revenue from banking services
• The Islamic bank’s share of revenue from financial and investment services
• Revenues from fund investments.
• Revenues from current account share investment.
• Depositors’ share of financial services revenue.

Assessment Strategy:

Participants will be informally assessed on their interaction during sessions and their participation in exercises.