Principles of Islamic banking and finance/PIBF201/Syllabus

PIBF 201 Contextual Background of Islamic Banking and Finance

This unit 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. Explain the ethical background and rationale for Islamic banking and finance

2. Comprehend different modes of Islamic financial transactions and their applications

Week / Session Plan

Week 1: Key Elements of Islamic Jurisprudence

Week 2: Islamic Economic Environment

Week 3: Rationale for Islamic Finance: Riba, Gharar and Mysir

Week 4: Fixed Income Islamic Modes of Finance

Week 5: Variable Income Islamic Modes of Finance