ISLAMIC BANKING PRODUCTS

[The One-Day Course contents are included, plus]

• Murabaha
• What is Murabaha?
• What are the characteristics of Murabaha?
• Murabaha terminology.
• What are the applications of Murabaha?
• Practical steps in constructing a Murabaha transaction.
• Bank guarantees with Murabaha.
• Murabaha and the shariah.
• How does Murabaha differs from conventional bank lending?
• What are the risks for Islamic banks providing Murabaha facilities?
• Mudaraba—Tier One and Tier Two
• What is Mudaraba?
• What is Mudaraba Tier One?
• What is Mudaraba Tier Two?
• Mudaraba terminology.
• The Two-Tier Mudaraba System
• What are the similarities and differences between the Two Tiers?
• Application of Mudaraba.
• Characteristics associated with Tier-One Mudaraba.
• Unrestricted and Restricted Mudaraba.
• Characteristics associated with Tier-Two Mudaraba.
• Implementation of a Tier-Two Mudaraba.
• Mudaraba case study.
• What is the difference between Tier-Two Mudaraba and conventional lending?
• How does Mudaraba compare with Musharaka?
• What are the risks for Islamic banks providing Mudaraba facilities?
• Musharaka
• What is Musharaka?
• Characteristics of Musharaka
• Musharaka terminology
• Applications of Musharaka
• Structure of a Musharaka contract.
• Term structure of Musharaka:-
• Permanent Musharaka
• Implementation of Permanent Musharaka
• Case-study: profitable Musharika
• Case-study: loss making Musharaka
• Diminishing Musharika
• Implementation of Diminishing Musharaka.
• Temporary Musharaka
• What are the risks with Musharaka partnership?
• What is the difference between Musharaka and Mudaraba?
• Ijarah and Ijarah-wa-Iktina
• What is Ijarah?
• What is Ijarah-wa-Iktina?
• Ijarah: operational leasing
• Ijara terminology
• Application of Ijarah
• Advantages of Ijara over bank borrowing.
• Characteristics of Ijarah.
• Case study
• Implementation of Ijarah.
• Why is Ijarah-wa-Iktina Shariah compliant?
• What is the difference between Ijarah and Murabaha?
• Istisna and Parallel Istisna.
• What is Istisna?
• What is Parallel Istisna?
• The characteristics of Istisna
• The characteristics of Parallel Istisna.
• Istisna terminology
• Application of Istisna
• Implementation of Istisna and Parallel Istisna.
• Why is Istisna Shariah compliant?
• What are the banking risks associated with Istisna contracts?
• Salam and Parallel salam
• What is Salam?
• What is Parallel Salam?
• The characteristics of Salam?
• The characteristics of Parallel Salam.
• Salam terminology.
• Implementation of Salam and Parallel Salam
• What are the critical limitations of each of these contracts?
• What is the difference between Salam and Murabaha?