Principles of Islamic banking and finance/PIBF202/Syllabus

PIBF 202: Islamic Banking

Unit 2 provides an overview of Islamic banking industry: its origin, current status and future. It then elucidates different types of Islamic banking products and their utilization. It explains the role of Shari’ah Boards that validates individual Islamic banks’ products, procedures and operations. The advisory function of Islamic Financial Services Board (IFSB) and Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) are also explained. Finally, this unit discusses the achievements and shortcomings of this industry and the challenges and prospects it faces in the future.

Learning Outcomes

After completing this unit, the students will be able to:

1. Analyze distinctive modus operandi of Islamic banks

2. Explain legal and regulatory environment of Islamic banks

3. Analyze current challenges & future prospects of Islamic banking

Week / Session Plan

Week 1: Key Differences Between Islamic and Conventional Banking

Week 2: Islamic Banking Products

Week 3: Structure and Operations of Islamic Banks

Week 4: Financial Reporting in Islamic Banks

Week 5: Present Status of Islamic Banking Industry, Challenges and Future Prospects