Islamic Finance - Intermediate Level
In-Company
For Introduction to Islamic Finance click here.
This intermediate level course is designed to help delegates consider in some detail the principles of Islamic Banking, the differences between Islamic and conventional banking and how modern day pressures can, might and are being reconciled within the Islamic code. It looks at much greater detail at the various Islamic products on offer and considers fully the key issues facing Islamic banks today. In this course we consider products and services in terms of their strategic and operational aspects rather that just defining what they are and do.
There will be an examination to test delegates understanding of the course. On completion delegates will be able to debate these issues in some detail with clients and colleagues alike.
Main topics covered include:
- Banking Crisis and Islamic Finance
- Basel 3 and Islamic Finance
- The Islamic business environment
- The principles of Islamic Finance
- Islamic Law of Contracts
- Islam and insurance
- Treasury, liquidity and asset management
- Equity and capital markets
- Application and use of funds
- Islamic accounting standards
- Corporate governance
- Islamic asset and fund management
- Islamic bond market
- Macronomic policy and Islamic state
- Risk management
Who Should Attend
All banking and finance professionals working within an Islamic financial institution and any professionals working in the field who wish to develop their skills and understanding further.
Pre-requisites
A basic knowledge of the banking and the financial services sector in both conventional and Islamic Finance markets is required. This course is not suitable for complete beginners.
Description
Global demand for an ethical form of banking has led to a near boom in Islamic banking and it is estimated that some 250 financial institutions in more than 45 countries practice some kind of Islamic finance. The market has been growing at more that 15% per annum and financial assets within the sector are estimated at US$ 500bn with Liquid Funds in the Islamic marketplace looking for quality assets at circa US$ 50bn.
The huge growth in Islamic banking has placed considerable pressure on Shariah scholars who have found themselves having to both consider and rule on a complex mix of ancient and modern banking practices, all in the last 25 years. This incredible growth and the extreme pressure to provide as wide a range of banking products as possible whilst staying within the true principles of Islam has led to some pressures and this is likely to continue as an increasing number of conventional banks offer Islamic services through specialized or separate subsidiaries. This course considers these pressures and the often conflicting aims of providing ever more services whilst staying faithful to Islam.
Teaching Method
Classroom lectures and interactive practical workshop format intended to affirm the learning objectives. There will be an examination to test delegates understanding of the course.
In order to help us establish your individual and business concerns, you will be asked to fill pre-course questionnaire.
Because of the nature of the course the number of places is limited and will be filled on first come, first accepted basis. We advise to book in advance in order to avoid disappointment.
Islamic Finance - Intermediate Level - A 2 Day Programme
Session 1: Principles & Development of Islamic Finance
- The Islamic World
- Islam & Economic development
- Development & growth of Islamic finance
Session 2: The Credit/Banking Crisis
- What caused it
- How are the regulators dealing with it
- What is the likely way forward
- How long will it last
- What are the implications for Islamic finance
- How vulnerable are Islamic banks to the same problems
- Basel 3 – the most likely way forward for conventional banks
- Islamic banks and Basel 3
Session 3: The Islamic Business Environment
- The modern Islamic state
- Authority in an Islamic state
- The Islamic legal system
- Foreign Business & Islamic law
- Islamic business ethics
- The responsibility of the Muslim Executive
Session 4: The Principles of Islamic finance
- The prohibition of Riba
- Real & notional interest
- Fixed & variable interest
- Interest as a return
- Methods of Islamic investment
- Trade credit & leasing
- Islamic deposits
Session 5: Modern Islamic Banking – Brief history
- History
- Pilot schemes for Islamic banking
- Success of the Nasser Social Bank
- The spread of Islamic banking in the GCC
- Islamic influences on Saudi Arabian domestic banking
- Moneychangers reorganise as Islamic banks
- The “Islamicisation” of commercial banking
- Problems for Islamic banks in Western markets
- Islamic banking in the developing world
Session 7: Islamic Law of Contracts
- Wa’d - Promise
- Muwaada or Mua’hida Agreement - Bilateral promise
- Aqd’ -. Contract
- Mudaraba Contract - Profit Sharing
- Musharaka Contract - Profit & Loss Sharing contracts
- Security Contracts:
- Hawala - Transfer
- Kafala - Guarantee
- Rahn - Mortgage
- Wakala - Agency Contract
- Foreign Exchange (SARF)
Session 8: Islam & Insurance
- Islamic attitudes towards risk
- Muslim objections to insurance
- Insurance practice in Islamic states
- Insurance & Islamic law
- Permitted forms of insurance
- Forward cover & exchange risk
Session 9: Other Areas
- Equity & Capital Markets
- Islamic Financial services industry
- Waqf & Zakat - Charitable giving and charitable tax
Session 10: Treasury, Liquidity and Asset Management
- Treasury management & liquidity
- The nature of deposit taking under Islam
- Liquidity management
- Profit or Loss
- Shareholders funds
- Trading & Investments
Session 11: Account and Deposit Gathering
- Current Accounts:
- Amanah (Trust)
- Wadia (Deposit)

Session 12: Application of Funds – Detailed examination
Session 13: Use of funds – Detailed examination
- Mudaraba
- Musharaka
- Istisna’a
Session 14: Islamic Accounting Standards
- Equities & Investment
- Insurance
- Foreign exchange & currency
- Investment bond market
- Legal issues
- Others
Session 15: Corporate Governance
- Jurisdiction
- Conflicts between Sharia law, local law, international law
- Differences between Islamic states
- Which law prevails
- Basel and world Trade Agreements
- Regulatory framework
- Fairness & suitability
- Islamic bank issues:
- Stakeholders
- Systemic Risk
- Regulations
- Depositor protection
- Internal control & risk management
- Information asymmetry
- Related party transactions
Session 16: Islamic Asset & Fund Management - detailed
- Investors’ Objectives:
- Capital preservation
- Maximise yields
- Balance between liquidity & profitability
- Incorporation of Islamic doctrines
- Link to Sharia’a precepts & ethics
- Legitimate goods
- Moral behaviour & social objectives
Session 17: Islamic Bond Market (Sukuk) - detailed
- Conventional debt securities:
- Rights not linked to assets of company
- Holders do not incur damages & losses of company
- Share in financing through usurious practices
- Term not necessarily same as project
- No Sharia’a constraints
Sukuk:
- Investment process
- Share of assets not right to revenues
- Profits & losses
- Proof of ownership
- Ownership costs
- Term matches project
- Lack of guarantee
- subject to Sharia’a rules
Session 18: Macroeconomic Policy and the Islamic State
- Monetary policy constraints
- Permitted monetary instruments
- Credit for social purposes
- Development banks
- Fiscal policy objectives
- Conventional taxes
- Islamic taxation
- Import duties
- The extent of State intervention
Session 19: Risk Management
- Types of risks
- Islamic risks
- Basic Principles of risk management
Session 20: Course Conclusion
- Summary
- Revision
- Open discussion
Session 21: Examination
Session 22: Examination Debrief
Mark Andrews
Mark is a banker with over 30 years experience in the UK corporate, investment and retail banking sectors. He qualified as an associate of the Chartered Institute of Bankers in 1981 finishing as the top candidate for the year with distinctions in International Trade and winning the Whitehead Prize for Monetary Theory.
Mark joined Lloyds Bank in the 1970’s after where he was appointed one of the first managers in the bank’s Corporate Banking Division. His duties included corporate governance, investment appraisals, credit control, control of lending by junior colleagues, direct lending and relationship management for individual companies and sectors.
During the 1980s Mark was appointed as one of the youngest Lloyds London City branch managers specialising in lending to employees of international bank clients and money market institutions. Duties included all aspects of lending control and the supervision at area level of lending by 5 retail branches which reported to him. Mark was subsequently promoted back to the Corporate Banking division as a senior corporate manager responsible for corporate governance and more complex treasury, banking, international trade and investment requirements of the bank’s largest clients, included some of the largest global energy companies, hotel groups, and construction companies.
From 1990-2001 Mark served as a Director of Granville Bank – a private bank which specialised in client wealth management, secured lending and investment and treasury business – and was a main board director of Granville Holdings Plc, the parent company, a London City based merchant bank which itself specialised in high value clients, both corporate and private.
For the past 9 years Mark has lectured extensively in Africa, the Middle East and Europe. Mark is an expert on corporate governance, Islamic finance and is also a subject specialist in investment, commercial and retail banking and finance.
IN-COMPANY TRAINING
If you have a team of 4 or more this course can be customised and organised in-house at your convenience. Contact one of our advisors to find out more.
Call us now on +44 (0) 207 993 8597
or send an e-mail to enquiry@eurekafinancial.com
