Course Information Undergraduate prospectus

Islamic Banking and Finance 1

Course summary

Course code: FINA1105
Level: 5
Credits: 30
School: Business Faculty
Department: Accounting and Finance
Course Coordinator(s): Hajar Raouf

Specification

Aims

The emergence of Islamic Banking & Finance (IB&F) has added a new dimension to the study of finance and economics. The course is complementary to the Financial Markets, Instruments and Institutions and Banking: Principles, Practice and Regulation. It provides students with an objective and professional assessment of Islamic banking theory and practice. The course covers aspects of the Islamic financial system in terms of its emergence, the underlying principles, the manner in which Islamic ethics are infused in financial practices and the financial products and instruments used by banks and institutions in practice.

The course aims are to familiarise students with developments in global financial and capital markets in relation to faith based banking and finance and to appreciate distinguishing features of the Islamic economic system. It provides students with an overview of Islamic finance law, regulations and aspects of the Islamic banking system. In addition this course will provide students with an understanding of Islamic banking products and concepts, and the challenges faced by Islamic banks.

Learning outcomes

On completing this course successfully students will be able to:

1. Acquire a sound understanding of the basic laws and rules applied in Islamic finance.
2. Draw comparisons between the conventional and Islamic banking business models.
3. Apply appropriate techniques for the evaluation of the financial performance and efficiency of Islamic banks.
4. Analyse the ethical foundations of Islamic finance and appreciate its place in the wider understanding of Islam and its adherents.
5. Apply knowledge of IB&F through a practical understanding of concepts and principles.
6. Explain the internationalisation of IB&F

Indicative content

Islamic Contract Law, Financial Instruments of Islamic Banking and Finance, Exchange Based Contracts, Service Based Contracts, Partnership Contracts, Supporting Contracts, Internationalisation of Islamic Banking, Measuring Risk in Islamic Banking, Measuring Performance in Islamic Banking, Risk Management in Islamic Finance, Islamic Banking over the latest Financial Crisis.

Teaching and learning activity

This course will be delivered through 2 hour weekly lectures and one hour seminars. Seminars will be geared towards cutting edge research in IB&F and business case studies.

Assessment

Group Report - 30% weighting, 40% pass mark, learning outcomes 1-6. Outline Details - A Group report that will examine a contemporary issue in IB&F. Quantitative data analysis will be required. 2500 words.

Exam - 70% weighting, 40% pass mark, learning outcomes 1-6. Outline Details - Students to answer four questions out possible seven. All questions carry equal mark weight.

Students are not required to pass all components in order to pass the course.