Principles of Islamic banking and finance/PIBF201/Overview

This micro provides an overview of basic features and goals of an Islamic economy. It explains the rationale for establishing an Islamic banking and financial system; the avoidance of riba (interest), gharar (uncertainty or deceptive features of business transaction), and mysir (excessive speculation). Finally, this unit explains different modes of Islamic finance that have been developed to avoid interest.

Learning outcomes

After completing this unit, the students will be able to

1. Summarize key elements of Islamic jurisprudence
2. Explain the background and rationale for Islamic banking and finance
3. Distinguish different modes of Islamic financial transactions.