Islamic finance in its modern form is barely 40 years old yet it remains a rapidly growing part of the financial sector and has survived the recent global banking crisis almost untouched. The size of the market is huge and demand for Islamic services exists wherever there is a significant Muslim community. It is reckoned that 600 financial institutions in more than 50 countries practice some kind of Islamic finance and the market continues to grow. The main attraction of Islamic finance is that it offers Shariah compliant banking to its clients and is the closest yet that any banking institution has managed to get to genuinely ethical and moral banking. It is underpinned by pure principles, with integrity at the forefront and a genuine sharing of profit and losses as its credo. This has all been achieved with remarkable speed and the sector’s popularity continues unabated.
This workshop style course explains in clear terms the basic principles of this increasingly important sector and shows how these and its products differ from the conventional banking models. It is designed to teach delegates the principles of Islamic Banking and to highlight the differences between Islamic and conventional banking. It explores the different products and services commonly found in both the GCC and the Islamic market globally and it assesses the relative advantages and disadvantages of each. By the end of the course delegates will have a full understanding of the products and principles involved in Islamic Banking and how they differ from Western banking models.
Anyone seeking a basic understanding of the nature and form of Islamic Banking.
Classroom lectures and interactive practical workshop format intended to affirm the learning objectives. There will be an examination to test delegates understanding of the course.
None although a basic knowledge of conventional banking and the financial services sector would be helpful.
Case Study: Consider the implications of key Islamic rulings on banking products and how these have shaped the products currently available? What are the key matters that you should consider when designing Islamic products
Exercise: We will construct a typical Islamic balance sheet highlighting the key differences, especially the contractual and profit/loss sharing element.
Exercise: Although moral hazard probably makes this academic, consider who bears what losses in each of the different sources of Islamic funds
Case study: Explain the main differences between an Islamic bank and a conventional bank
Exercise: You have a client looking to replace commercial vehicles and not wishing to lay out substantial cash up front, how might this be achieved using Islamic banking techniques.
Exercise: Why is Musharaka not more popular given that it enshrines Islamic principles completely?
Exercise: Taking into account all of the above, name areas where you feel investment activity is unacceptable or prohibited.
Exercise: Using Dubai as an example, consider how the recent problems might impact this important
Exercise: Takaful is a controversial subject amongst some scholars. Why is this?
Exercise: What is the difference between a Mudaraba and Wakala arrangement in a two tier Takaful model?
Case Study: What are the key issues faced by Islamic institutions in implementing the Basel Accord? How can these be overcome?
Learning through action - every program we deliver is highly practical and addresses real live issues. We use simulations, exercises and case studies and all our methods are based on the latest neuroscience and positive psychology research findings. Everything we deliver and challenge our participants to think about leads back to one simple question “what am I going to do differently back at work and how?”.