Islamic Banking, also referred to as Islamic Finance, is the overarching framework of Sharia, or Islamic law that guides the activities of Muslim corporations, banks, and other lending institutions as they raise capital. This frameworkalso describes the forms of investment that are permitted under this law.
Islamic Banking stands apart from conventional banking in four key areas: a strict prohibition on charging and receivinginterest, adherence to ethical standards in investments, a focus on investments with moral or social values at their core, and a structure of shared risk.
This course of Islamic banking starts with an overview of the fundamentals of Islamic Financial Intermediation, the basics of the analytical framework used to monitor and manage risks confronting Islamic financial institutions, including credit risk, liquidity risk, market risk, and operational risk.
Syllabus
Week 1 – Fundamentals of Islamic Financial Intermediation
Islamic Intermediation Contracts
Understanding the Balance Sheet of an Islamic Bank
Financing Instruments in Islamic Finance
Investing Instruments in Islamic Finance
Types of Islamic Financial Institutions
Week 2 – Framework for Risk Analysis of Islamic Banks
Types of Risks for a Bank
Basics of Risk Management
Modes of Evaluation of a Bank
Analysis of the Overall Banking Sector
Financial Analysis of Banks
Framework for Risk Analysis of Banks
Principles of an Effective Risk Analysis
Analytical Tools
Week 3: Credit Risks with Assets and Their Management