IEF 330 - Islamic Finance and Banking

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.

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.