Faculty of Business and Management Sciences · International Trade and Finance · Undergraduate
Course Objective
The purpose of this course is to provide the basics of Islamic banking and the development of the Islamic finance and banking industry to the students. This course will enable the students to acquire basic understanding on how Islamic banks work, the fundamentals of their functions and how they structure their financing and their resources mobilizations in accordance with Shariah principles. The students are also exposed to the Islamic banking theories by providing an understanding on the main components of the Islamic banking industry and its operating structures. The course attempts to differentiate the elements between the Islamic banking system and its conventional counterparts.
Course Content
This subject discusses the fundamental concepts of banking and Islamic financing based on the tenets of Shariah. The topics include definition of terms and concepts; Islamic financial transaction contracts; Islamic banks, functions and responsibilities; financial transactions, challenges; role in economic development; control and supervision on Islamic banks; and risk management in Islamic banks.
Required Resources
Understanding Islamic Finance: M. Ayoub, Wiley.
Recommended Resources
Islamic Finance: Atila Yanpar, Scala Publishing.
Course Learning Outcomes
- To train qualified personnel to participation finance sector
- To create human resources with academic competence in the relevant field
Core Area Distribution
Teaching Methods
Assessment & Evaluation
ECTS / Workload
| Activity | Quantity | Duration (h) | Total Workload |
|---|---|---|---|
| Course Duration (Including Exam Week) | 15 | 3 | 45 |
| Out of Class Study Period | 15 | 5 | 75 |
| Midterm | 1 | 1 | 1 |
| Quiz | 0 | 0 | 0 |
| Assignment | 1 | 10 | 10 |
| Practice | 0 | 0 | 0 |
| Final | 1 | 2 | 2 |
Course Schedule
| Week | Subject | Preparation |
|---|---|---|
| 1 | An brief introduction to money and Islamic banking | Take notes for that week |
| 2 | Introduction to historical Islamic finance products I | Revisiting the previous week, working ahead to this week's |
| 3 | Introduction to historical Islamic finance products II | Review the previous week, looking ahead at this week's grade. |
| 4 | Regulatory framework and Capital requirement | Review the previous week, looking ahead at this week's grade. |
| 5 | Products and Services of Islamic Banks | Review the previous week, looking ahead at this week's grade. |
| 6 | Deposit operations | Review the previous week, looking ahead at this week's grade. |
| 7 | Mid term | Preparation for the midterm. |
| 8 | Financing operations 1 | A sneak peek at this week's note. |
| 9 | Financing operations 2 | Reviewing last week, looking at this week's notes first. |
| 10 | Pricing, credit risk and expected loss | Looking at this week's note ahead. |
| 11 | Market risk, rate of return risk and displaced commercial risk 1 | Looking at this week's note ahead. |
| 12 | Market risk, rate of return risk and displaced commercial risk 2 | Reviewing last week and looking ahead at this week's grade. |
| 13 | The main challenges facing Islamic banking operations | Look at the lesson beforehand. |
| 14 | Advantages of Islamic finance and banking | Prepare for class in advance |
| 15 | Final Examination | Pereparation for the exam |