IC312-Islamic Banking Practices

Module Provider: ICMA Centre
Number of credits: 20 [10 ECTS credits]
Level:6
Terms in which taught: Spring term module
Pre-requisites:
Non-modular pre-requisites:
Co-requisites:
Modules excluded:
Current from: 2023/4

Module Convenor: Dr Mohd Pisal Zainal
Email: m.p.zainal@henley.edu.my

Type of module:

Summary module description:

This module introduces basic concepts, principles, products and services offered by the Islamic banking system. It equips students with a working knowledge of the types of Islamic contract associated with the products and services, offered by the Islamic banking system – either retail or corporate. This module familiarizes the students with regulatory and legal frameworks governing the conventional and Islamic banking systems. The dual-banking perspective is the approach of the module. This module provides a link to the universally accepted principles of the United Nations General Assembly’ Sustainable Development Goals (SDGs) and green financing (responsible finance), also the value-based banking system.Ìý.

This module is delivered at °ÄÃÅÁùºÏ²Ê¿ª½±¼Ç¼ Malaysia.

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Aims:

This module provides students with a working knowledge of principles, products and services, and treasury functions and operation of an Islamic bank. In achieving these objectives, the students will be exposed to the structure of the Islamic financial system and the shari'ah (Islamic law) and legal frameworks of the Islamic financial system.

Assessable learning outcomes:

At the end of the course, students are expected to be able to:

• develop and demonstrate appropriate knowledge of the fundamental concepts and principles of Islamic banking/finance;


• critically analyse on the need to engage and be knowledgeable about leading edge practices in Islamic finance/banking;


• analyse the importance of continuing professional learning and development throughout their career;


• within the fieldof Islamic banking/finance, graduating students will be able to demonstrate confident, credible communication regardless of the mode of transmission.?

Additional outcomes:

ÌýInformation gathering skills, working in team as well as presentation skills.

Outline content:

Tentative Topics

• Introduction to principles of Islamic finance:


• Types of contracts in Islamic banking system


• Shari’ah and Regulatory Frameworks: Islamic and conventional banking systems


• The structure of Islamic financial system: Roles and functions of an Islamic bank


• Islamic Banking Operations:
  
  
  
  • Liability side: Types of deposit products
  
  
  • Asset side: Types of financing products
  
  
  
  


• Corporate Financing.ÌýTrade Financing


• Financial Services and Channel Management. Treasury functions and operations. The Islamic Interbank money market


• Managing Islamic banking institutions. Risk management for Islamic banking system


• SDGs and green financing in Islamic banking system.ÌýValue-Based Banking Intermediation (VBI) Banking.


• Deposit Insurance System


• Revision

Global context:

This module covers the regulatory frameworks from the global perspective, since Islamic banking and other related financial institutions exist in more than sixty countries globally. However, the module will draw heavily from the experience of Malaysia in terms of the depth and width of products offering and sound regulatory frameworks.

Brief description of teaching and learning methods:

Summative assessment- Examinations:

One two-hour, closed-books, closed-noted final examination.

Summative assessment- Coursework and in-class tests:

Written group assignments are due in week 9.

Formative assessment methods:

Constructive alignments are given during seminar classes.

Discussions and feedbacks on the draft of oral presentation.

Discussions and feedbacks on the draft of the assignments prior to final submission.

Penalties for late submission:

The Module Convener will apply the following penalties for work submitted late, in accordance with the University policy.

• where the piece of work is submitted up to one calendar week after the original deadline (or any formally agreed extension to the deadline): 10% of the total marks available for the piece of work will be deducted from the mark for each working day (or part thereof) following the deadline up to a total of five working days;


• where the piece of work is submitted more than five working days after the original deadline (or any formally agreed extension to the deadline): a mark of zero will be recorded.

The University policy statement on penalties for late submission can be found at:

You are strongly advised to ensure that coursework is submitted by the relevant deadline. You should note that it is advisable to submit work in an unfinished state rather than to fail to submit any work.

Assessment requirements for a pass:
A weighted average of 40%

Reassessment arrangements:

During the August University Resit Period

To re-sit the examination, if the weighted average is below 40%.

Additional Costs (specified where applicable):

Required textbooks:ÌýÌý£30.00

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Last updated: 5 April 2023