Course Description

This introductory course is designed to teach delegates the principles of Islamic Banking and to highlight the differences between islamic and conventional banking. It explores the different products and the islamic market globally and it assesses the relative advantages and disadvantages of each. By the end of the course delegates will have a full understanding of the products and principles involved in Islamic Banking and how they differ from w6estern banking models

Course Objectives

·         Understanding the principles of Islamic Finance, Shariah law and the key Islamic products

·         Comparing and contrasting the components of an Islamic financial institution's balance sheet and income statement to those of a non-Islamic financial institution

·         Identifying the risks particular to Islamic financial Institutions

·         Using a structured approach to assess and benchmark the performance of Islamic Banks

Who Should Attend?

·         Commercial Bankers

·         Board members

·         Advisors on Islamic banking

·         Investment Officers

·         Individuals with interest in Islamic Banking and Finance

·         Anyone seeking a basic understanding of the nature and form of Islamic Banking

Program Schedule

DAY 1

·         Riba, the objection to usury or interest

·         Exclusive asset backed financing

·         Profit and loss sharing

·         Musharakah or Shirkah

·         Mudarabah

·         Ijarah

·         Salam, Istisana and Murabaha

·         Sukuk

·         Takaful

DAY 2

·         Structured approach - application of purpose payback model to Islamic banks

·         Key differences between Islamic and conventional banks

·         Structure and seniority in Islamic structures

·         Significance of wadia deposits.

·         What is driving change

·         Banks' Islamic windows

·         Growth in Islamic and non Islamic countries

·         Innovative product developments and Islamic banking strategies

·         Implications for counter-party risk and business

DAY 3

·         Arbiters of what is Islamic compliant

·         The Islamic Financial Services Board regulation of capital adequacy and the application of Basel II in Islamic banking countries

·         Sharia compliance boards and operational risk

·         Sources and quality of disclosure

·         Accounting issues for Islamic products

·         Reviewing an annual report

DAY 4

·         Evaluating asset quality

·         Commission, a proxy for interest income?

·         Ratios to measure overall performance

·         How Islamic banks performance compares with conventional banks.

·         Funding and treasury management

·         Managing liquidity without using the interbank market

·         Depositor protection and deposit income

DAY 5

·         Equity versus debt concept

·         Is limited liability Sharia compliant?

·         Types of capital in an Islamic institution and capital adequacy.

·         Managing growth

·         Standardisation and regulation of Islamic products

·         Product innovation and development

·         Skills shortage in Islamic finance and Sharia law