Fundamentals of Islamic Banking & Finance

This module has been designed to provide participants with a good introductory level of knowledge and understanding to ensure that they are familiar with all the major issues relating to Islamic banking and finance. Participants will be provided with a wide-ranging introduction to the subject, including a background to the growth in recent years and the reasons why this is important. They will then be provided with an introduction to the following topics: the ideological background, Islamic economic theory, the concept of ownership and wealth under Islamic law, and the relationship between prosperity and Islamic economic theory. The prohibition of Riba (interest); is examined in some detail as this is fundamental to an understanding of the subject of Islamic banking and finance. The issue of uncertainty (Gharar); is introduced and the important difference between interest and profit is considered. The module goes on to briefly outline and consider the main contracts used by Islamic banks. Finally, the regulatory aspects are considered.