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]

 

  •  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?

 

THREE-DAY COURSE

ISLAMIC CAPITAL MARKETS

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

  • Shariah Boards
  • What are the common Shariah principles underlying all Islamic financial instruments?
  • The key questions the Shariah Boards ask
  • What are the problems with the fatwas issued  by Shariah Boards?
  • Jurisprudence issues affecting Capital Markets.
  • Characteristics of key Capital  Market Instruments acceptable to the Shariah Boards.
  • Islamic Capital Market Instruments
  • The hierarchy of Capital Markets: where do Islamic Products fit?
  • Is it halal or haram for Muslims to invest in the stock market?
  • Are companies with debt related activities excluded from Islamic investment portfolios?
  • What are the Islamic investment purification principles?
  • Commodity Morabaha
  • Islamic leasing
  • Islamic Equity Market Funds
  • Real Estate Investment Trusts
  • Islamic Hedge Funds
  • Islamic Rating Systems
  • Islamic Market indices:
  • Dow Jones Islamic Market Index (DJIM)
  • FTSE Global Islamic Index Series
  • Factors affecting innovation in Islamic banking and Capital markets.
  • Islamic Securitization
  • Securitization for conventional banking products
  • Securitization for Islamic banking products
  • The driving forces behind securitization
  • What are the Shariah requirements for securitization?
  • Securitization structures, pass-throughs, Asset backed bonds, pay-throughs.
  • Ownership conveyance issues
  • Credit enhancement issues.

 

FOUR-DAY COURSE

SUKUK: ISLAMIC BONDS

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

  • Sukuk: Islamic Bonds
  • Sukuk basis
  • How do sukuk differ from conventional bonds
  • AAOIFI Sukuk Standards
  • How have Sukuk evolved?
  • Alternative Sukuk Structures
  • Sukuk and the private sector
  • Rating Sukuk
  • Risks associated with Sukuk
  • Case studies.

 

FIVE-DAY COURSE

RISK MANAGEMENT IN ISLAMIC BANKING

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

  • Risk in Islamic banking
  • What are the risks faced by Islamic banks which are not faced by conventional banks?
  • Business risks:- displaced commercial risk, withdrawal risk, solvency risk
  • Governance risks:- fiduciary risk, operational risk, transparency risk.
  • Transaction risks:- credit risk, market risk, mark-up risk.
  • Treasury risks:- asset and liability management, liquidity risk, hedging risk.
  • Systemic risks:- regulatory risk, business environment risk, institutional risk.
  • CAMEL ratings for conventional and Islamic banks.
  • Asset, Liability and capital Adequacy issues for Islamic banks
  • Liquidity management in conventional banks
  • Liquidity management in Islamic banks
  • Shariah requirements for Islamic Money Market Instruments.
  • Liability management in conventional banks
  • Liability management in Islamic banks
  • Asset management for conventional banks
  • Asset management for Islamic banks
  • Capital adequacy for conventional banks
  • Capital adequacy for Islamic banks
  • Islamic Banking Business Model
  • What are the implications for Islamic banks using Profit and Loss share [PLS] principles?
  • What does the finance literature tell us about debt finance and PLS finance?
  • Agency problems, asymmetric risk and moral hazard issues
  • Problems associated with with PLS in practice
  • Agency theory solution for conventional banks and for Islamic banks.
  • Challenges for Islamic Banks
  • Lack of uniform regulatory framework
  • No single totally Islamic financial center
  • Slow pace of innovation
  • Accounting issues not resolved
  • Inconsistent Shariah rulings
  • Corporate governance
  • Structure of the Industry
  • Personnel and training issues
  • Islamic Financial innovation
  • Financial innovation for conventional banks
  • Financial innovation for Islamic banks
  • Barriers to entry within Islamic financial markets
  • Stages of financial innovation for Islamic banks
  • Which Islamic financial innovations have succeeded and failed?
  • Securitization and financial innovation
  • What are the pressures of Islamic  financial innovation?
  • What are the special factors affecting Islamic financial innovation?
  • Financial engineering for Islamic products.
  • Applying the Porter Model to Islamic banks.

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