Islamic Banking & Finance

• ✓PROHIBITED ACTIVITIES
• ✓JAHL, GAMBLING, (MAISER AND QIMAR)
• ✓GHARAR
• ✓RIBA- DEFINITION AND INTERPRETATION
• ✓Basic Prohibitions:
• ✓The concept of Mal, wealth and the nature of money
• ✓Market forces and the Role of the State and Regulators
• ✓Adl and Ehsan; Distributive Justice
• ✓Objectives of Islamic Economics and Finance
• ✓The concept of Lawful and unlawful as per Shariah
• ✓Seeking guidance from Quran and Sunnah and other sources of Islamic Law
• ✓Shariah: Key to understanding Islamic banking

• ✓Categories of Islamic Modes
• ✓Shariah approved activities
• ✓Sanctity of contracts
• ✓Time value of money in Islamic perspective
• ✓Assets backing and value addition
• ✓Risk sharing /profit sharing (Al Kharaj bid Damam)
• ✓Principles governing loans and debts
• ✓Characteristics of Islamic financial system: –

Global View Of Islamic Banking

• ✓Bahrain / Middle East Model
• ✓Sudanese Model
• ✓IB Models and Business nature

Islamic Law of Contracts and Principles of trading:

• ✓Khiyar (option for rescinding the sale contracts)
• ✓Differentiating trading, Riba based lending and leasing
• ✓Trading in goods vs. trading in money
• ✓Exchange of the counter values
• ✓Rules in Exchange of currencies (Bai as-Sarf)
• ✓Sales and transfer of ownership
• ✓Possession of goods
• ✓Valid and invalid sales
• ✓Sale of Assets (corpus) Versus sale of their usufruct
• ✓Types of sales
• ✓Introduction to Islamic Law of Contract
• ✓Islamic Law of Contracts and Principles of trading:

• ✓Kafalah (Guarantee)
• ✓HAWALAH (Assignment of debts)
• ✓Amanah
• ✓Wakalah
• ✓Jua’alah

• ✓Risks for Islamic banks in Murabaha transactions
• ✓Difference between Murabaha based financing and conventional bank lending
• ✓Murabaha and default by solvent / insolvent purchase-debtor
• ✓Commodity Murabaha- applications
• ✓Stages, process and sequencing in Murabaha
• ✓Agreement to sell and sale agreement
• ✓Agency contract and Murabaha
• ✓Promise / request by the client
• ✓Practical steps for Murabaha transactions
• ✓Characteristics and essentials of Shariah compliant Murabaha to Purchase Orderer
• ✓Murabaha terminology and its variants

• ✓Scope of Musawamah
• ✓Difference between Murabaha and Musawamah
• ✓Scope and application of Murabaha with case studies

• ✓Problems and Risks for banks in Musharaka Financing
• ✓Application of Musharaka as a mode
• ✓Profit / Loss Distribution
• ✓Musharakah Management and Liability
• ✓Security / collateral in Musharaka
• ✓Constructive liquidation of Musharaka
• ✓Termination of Musharaka
• ✓Basic Rules in Musharaka
• ✓Diminishing Musharaka
• ✓Temporary (Redeemable)Musharaka
• ✓Permanent Musharaka
• ✓Structures of Musharaka:-
• ✓Types of Musharaka:-
• ✓Characteristics of Musharaka
• ✓Terminology of Musharakah

• ✓Mudaraba defined
• ✓Problems and Risks for Islamic banks providing Mudaraba based financing
• ✓Scope of Mudaraba for banking system
• ✓Termination of Mudaraba
• ✓Mudaraba distinguished from Musharaka
• ✓Mixing of Funds by Mudarib
• ✓Appreciation in Mudaraba Capital
• ✓Profit / Loss distribution
• ✓Mudaraba Capital
• ✓Mudaraba defined

• ✓Ijarah-operating lease
• ✓Difference between Ijarah and Murabaha
• ✓Definition and juristic rules of Ijarah

Shariah compliance aspects of Ijarah; Practical Issues in Ijarah

• ✓Diminishing Musharaka as a financing mode
• ✓Unilateral Promise and transfer of ownership title
• ✓Lease rentals in Diminishing Musharaka
• ✓Steps with sequencing in Diminishing Musharaka
• ✓Basic features and Shariah Essentials of Diminishing Musharaka
• ✓DM and rules in respect of combination of various contracts
• ✓DM in Shirkatul Milk or Shirkatal Aqad
• ✓Shariah compliance aspects of Ijarah; Practical Issues in Ijarah

• ✓Islamic banks responsibilities in respect of takaful
• ✓Models of takaful
• ✓How it is different from insurance
• ✓Basic concept of takaful
• ✓Role of insurance / takaful in islamic banking business

• ✓Commission charging from the merchants / businesses
• ✓Fee charging from the Card Holders
• ✓Purchasing gold, silver, currencies by using credit cards
• ✓Payment through cards and ‘Possession’ of goods traded
• ✓Shariah rulings on various cards
• ✓Use of various modes for various cards
• ✓Characteristics of various cards

• ✓Scope and Potential of Salam
• ✓Penalty for non performance
• ✓Revoking the Salam Contract
• ✓Risks in Salam application
• ✓Salam combining with Murabaha
• ✓Sale of Salam goods through agent
• ✓Unilateral promise to sell Salam goods to third parties
• ✓Parallel Salam
• ✓Difference between Salam and Murabaha

• ✓Risks associated with Istisna´a
• ✓Application of Istisna´a and Parallel Istisna´a
• ✓Parallel Istisna´a
• ✓Difference between Salam and Istisna´a
• ✓Rules for valid Istisna´a contract
• ✓Concept and definition of Istisna´a

Funds/Resource Mobilization

• ✓Export Financing
• ✓Import Financing
• ✓Project Financing
• ✓Working Capital Finance
• ✓Fund management on Mudaraba and Wakalahtul istismar principle
• ✓Certificates of Deposit/Term Deposits, and COIs etc.
• ✓Current Accounts, Investment Deposits
• ✓Deposit mobilization and Product development
• ✓Profit and Loss distribution mechanism
• ✓Risk Averse and Risk Friendly Depositors
• ✓Funds/Resource Mobilization