Our Course Contents

DAY-ONE COURSE

PRINCIPLES OF ISLAMIC BANKING 

What is Islamic Banking?

What are the principles of Islamic Banking?

What are the driving principles of Islamic banks?

The characteristics of an Islamic financial system:-

Riba

Risk sharing; profit sharing; loss sharing.

Time value of money Islamically interpreted.

Prohibition of Speculation

ü Sanctity of contract.

Shariah approved activities.

The key characteristics of the liabilities of Islamic banks:-

Current accounts

Saving accounts

Investment accounts

  • Restricted investment accounts
  • Unrestricted investment accounts

Bank capital

Nature of Islamic Contracts

Intermediation contracts:-

  • Mudaraba
  • Kifala
  • Amana
  • Takaful
  • Wikala
  • Ju’ala

Transactional contracts:-

  • Murabaha
  • Bay salam
  • Bay mu’ajal
  • Ijara
  • Istisna
  • Musharaka.

 

TWO-DAY COURSE

ISLAMIC BANKING PRODUCTS

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

 

v Murabaha

ü What is Murabaha?

ü What are the characteristics of Murabaha?

ü Murabaha terminology.

ü What are the applications of Murabaha?

ü Practical steps in constructing a Murabaha transaction.

ü Bank guarantees with Murabaha.

ü Murabaha and the shariah.

ü How does Murabaha differs from conventional bank lending?

ü What are the risks for Islamic banks providing Murabaha facilities?

v Mudaraba—Tier One and Tier Two

ü What is Mudaraba?

ü What is Mudaraba Tier One?

ü What is Mudaraba Tier Two?

ü Mudaraba terminology.

ü The Two-Tier Mudaraba System

ü What are the similarities and differences between the Two Tiers?

ü Application of Mudaraba.

ü Characteristics associated with Tier-One Mudaraba.

ü Unrestricted and Restricted Mudaraba.

ü Characteristics associated with Tier-Two Mudaraba.

ü Implementation of a Tier-Two Mudaraba.

ü Mudaraba case study.

ü What is the difference between Tier-Two Mudaraba and conventional lending?

ü How does Mudaraba compare with Musharaka?

ü What are the risks for Islamic banks providing Mudaraba facilities?

v  Musharaka

ü what is Musharaka?

ü Characteristics of Musharaka

ü Musharaka terminology

ü Applications of Musharaka

ü Structure of a Musharaka contract.

ü Term structure of Musharaka:-

  • Permanent Musharaka
  • Ø Implementation of Permanent Musharaka
  • Ø Case-study: profitable Musharika
  • Ø Case-study: loss making Musharaka
  • Diminishing Musharika
  • Ø Implementation of Diminishing Musharaka.
  • Temporary Musharaka

ü What are the risks with Musharaka partnership?

ü What is the difference between Musharaka and Mudaraba?

v Ijarah and Ijarah-wa-Iktina

ü What is Ijarah?

ü What is Ijarah-wa-Iktina?

ü Ijarah: operational leasing

ü Ijara terminology

ü Application of Ijarah

ü Advantages of Ijara over bank borrowing.

ü Characteristics of Ijarah.

ü Case study

ü Implementation of Ijarah.

ü Why is Ijarah-wa-Iktina Shariah compliant?

ü What is the difference between Ijarah and Murabaha?

v Istisna and Parallel Istisna.

ü What is Istisna?

ü What is Parallel Istisna?

ü The characteristics of Istisna

ü The characteristics of Parallel Istisna.

ü Istisna terminology

ü Application of Istisna

ü Implementation of Istisna and Parallel Istisna.

ü Why is Istisna Shariah compliant?

ü What are the banking risks associated with Istisna contracts?

v Salam and Parallel salam

ü What is Salam?

ü What is Parallel Salam?

ü The characteristics of Salam?

ü The characteristics of Parallel Salam.

ü Salam terminology.

ü Implementation of Salam and Parallel Salam

ü What are the critical limitations of each of these contracts?

ü What is the difference between Salam and Murabaha?

 

 

THREE-DAY COURSE

ISLAMIC CAPITAL MARKETS

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

v Shariah Boards

ü What are the common Shariah principles underlying all Islamic financial instruments?

ü The key questions the Shariah Boards ask

ü What are the problems with the fatwas issued  by Shariah Boards?

ü Jurisprudence issues affecting Capital Markets.

ü Characteristics of key Capital  Market Instruments acceptable to the Shariah Boards.

v Islamic Capital Market Instruments

ü The hierarchy of Capital Markets: where do Islamic Products fit?

ü Is it halal or haram for Muslims to invest in the stock market?

ü Are companies with debt related activities excluded from Islamic investment portfolios?

ü What are the Islamic investment purification principles?

ü Commodity Morabaha

ü Islamic leasing

ü Islamic Equity Market Funds

ü Real Estate Investment Trusts

ü Islamic Hedge Funds

ü Islamic Rating Systems

ü Islamic Market indices:

  • Dow Jones Islamic Market Index (DJIM)
  • FTSE Global Islamic Index Series

ü Factors affecting innovation in Islamic banking and Capital markets.

v Islamic Securitization

ü Securitization for conventional banking products

ü Securitization for Islamic banking products

ü The driving forces behind securitization

ü What are the Shariah requirements for securitization?

ü Securitization structures, pass-throughs, Asset backed bonds, pay-throughs.

ü Ownership conveyance issues

ü Credit enhancement issues.

 

 

 

 

FOUR-DAY COURSE

SUKUK: ISLAMIC BONDS

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

v Sukuk: Islamic Bonds

ü Sukuk basis

ü How do sukuk differ from conventional bonds

ü AAOIFI Sukuk Standards

ü How have Sukuk evolved?

ü Alternative Sukuk Structures

ü Sukuk and the private sector

ü Rating Sukuk

ü Risks associated with Sukuk

ü Case studies.

 

FIVE-DAY COURSE

RISK MANAGEMENT IN ISLAMIC BANKING

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

 

v Risk in Islamic banking

ü What are the risks faced by Islamic banks which are not faced by conventional banks?

ü Business risks:- displaced commercial risk, withdrawal risk, solvency risk

ü Governance risks:- fiduciary risk, operational risk, transparency risk.

ü Transaction risks:- credit risk, market risk, mark-up risk.

ü Treasury risks:- asset and liability management, liquidity risk, hedging risk.

ü Systemic risks:- regulatory risk, business environment risk, institutional risk.

ü CAMEL ratings for conventional and Islamic banks.

v Asset, Liability and capital Adequacy issues for Islamic banks

ü Liquidity management in conventional banks

ü Liquidity management in Islamic banks

ü Shariah requirements for Islamic Money Market Instruments.

ü Liability management in conventional banks

ü Liability management in Islamic banks

ü Asset management for conventional banks

ü Asset management for Islamic banks

ü Capital adequacy for conventional banks

ü Capital adequacy for Islamic banks

v Islamic Banking Business Model

ü What are the implications for Islamic banks using Profit and Loss share [PLS] principles?

ü What does the finance literature tell us about debt finance and PLS finance?

ü Agency problems, asymmetric risk and moral hazard issues

ü Problems associated with with PLS in practice

ü Agency theory solution for conventional banks and for Islamic banks.

v Challenges for Islamic Banks

ü Lack of uniform regulatory framework

ü No single totally Islamic financial center

ü Slow pace of innovation

ü Accounting issues not resolved

ü Inconsistent Shariah rulings

ü Corporate governance

ü Structure of the Industry

ü Personnel and training issues

v Islamic Financial innovation

ü Financial innovation for conventional banks

ü Financial innovation for Islamic banks

ü Barriers to entry within Islamic financial markets

ü Stages of financial innovation for Islamic banks

ü Which Islamic financial innovations have succeeded and failed?

ü Securitization and financial innovation

ü What are the pressures of Islamic  financial innovation?

ü What are the special factors affecting Islamic financial innovation?

ü Financial engineering for Islamic products.

ü Applying the Porter Model to Islamic banks.

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