Introduction:

In order to respond to the growing needs for capacity building in the Islamic Banking and Finance industry, London premier centre offers a short training programme for professionals in the banking and finance sector. The training programme is conducted under the capacity building with its aim to contribute to the development of institutional capacity within the various segments of Islamic finance. It will facilitate further development of Islamic finance as well as deepen participants/institutions knowledge and skills in the respective area.

Course Objectives:

• Gain an understanding of the operations of Islamic banks
• Learn about the historical development of Islamic banking
• Understand the theoretical foundations of the institutionalisation of Islamic finance
• Get to grips with the functions, products and services and social utility linked with Islamic finance
• Gain an appreciation of governance and regulation
• Learn about the Shariah oversight and the supervisory boards
• Explore the reputation management of the functions and governance within Islamic banks

Course Content

Day 1       

• Islamic Banks in the Context
  • The theoretical foundation of the institutionalisation of Islamic finance
  • The historical development of Islamic banking
  • The core objectives of Islamic banking
  • The conceptual difficulty of banking without riba
  • Business models – the bank model versus the non-bank model
  • Business lines – retail banks versus wholesale/investment banks
  • Surviving in a non-Islamic environment
  • The attitude of regulators – Muslim and non-Muslim
  • Competing alongside conventional banks
  • Liquidity management issues

Day 2

• Functions
• Products and Services
  • Deposits
  • Trade finance
  • Corporate finance
  • Agriculture
  • Consumer
  • Treasury

Day 3

• Balance Sheet
  • Asset side
  • Liability side
  • Accounting peculiarities
• Social Utility
  • Economic distinction?
  • Qard (interest-free loan)
  • Charity
  • Zakat (religious tax)

Day 4

• Governance
• Regulation
  • Capital adequacy
  • Risk management
  • Reporting & disclosure
  • Central bank support
• Shariah Oversight
  • Shariah supervisory boards, their role and purpose
  • Shariah compliance departments and advisers
  • Shariah auditors
  • The view of English law on Shariah
• Reputation Management

Day 5

• • Case study – Islamic Bank
  • Conclusion