Introduction to Islamic Banking & Finance

Understanding the Tools and Techniques in Islamic Banking

5 Found
Date Duration Venue Fees
24-28 Jun 2024 5 Days New York - USA US$6,450 Register
23-27 Sep 2024 5 Days Sharm El Sheikh - Egypt US$5,450 Register
23-27 Dec 2024 5 Days Dubai - UAE US$4,450 Register

Course Overview

Islamic Banking is an integral part of Islamic Finance. Islamic bank is the first sector to emerge from Islamic finance. Therefore, it is important to know the basics of Islamic finance and proceed to Islamic banking. This section explains what Islamic finance and its basic principles is.

This 5-day Introduction to Islamic Banking & Finance training course provides participants with a conceptual framework for understanding the key concepts, theories, and principles associated with Islamic banking and finance. It will provide the participants with a thorough understanding of the central products and services the Islamic banking and finance industry offers. Current issues and concerns pertinent to Islamic banking and finance are also considered, giving participants insight into the possible future directions of this rapidly growing industry.

Course Objectives

This training course aims to enable participants to achieve the following objectives:

  • Understand the basics of Islamic banking
  • Be able differentiate Islamic banking and conventional banking
  • Identify products of Islamic banks
  • Learn the basic terminology used by Islamic banks
  • Describe the functions, sources, and uses of funds of Islamic banks
  • List the risks and risk management of Islamic banks

Target Audience

This training course is suitable for a wide range of professionals but will greatly benefit:

  • Finance Professionals in banks and financial institutions
  • Beginners who require a more in-depth understanding of the concept of Islamic finance & corporate governance
  • Business Consultants and Professional Advisers
  • Students in Finance and Accounting

Training Methodology

The training course will combine presentations with interactive practical exercises, supported by video materials, activities, and case studies. The participants will be encouraged to partake actively in relating the principles of best practices in Islamic banking sector to the needs of their workplace.

Course Outline

Day One

Conventional Banking models & Islamic Business Environment

  • History
  • Types of Banks
  • Products
  • Basic Principles
  • The Modern Islamic State
  • The Islamic Legal System
  • What are the key differences between Western and Islamic Financial institutions?
Day Two

The Principles of Islamic Finance

  • The Prohibition of Riba
  • Key Islamic Principles and their Application to Islamic Finance
  • The Principles of Islamic Trade
  • Introduction to Financial Instruments
    • Mudaraba
    • Musharaka
    • Murabaha
    • Ijara
    • Salam
    • Istisn’a
    • Mutual Funds
  • What is each product? (Definition – Compliance)

Sources of Customer Funds

  • Introduction to Waqf & Zakat
  • Key Concepts of Depositing
  • Islamic Deposit Accounts
  • Company Assets
  • Reserves and Equity
  • Short- and Long-term Investment Capital
  • Islamic current accounts:
    • Amanah (Trust)
    • Wadia (Deposit)
Day Four

Risk Management

  • Islamic Bank vs Conventional Bank
  • Stakeholder of an Islamic Bank
  • Generic Risk
  • Credit Risk
  • Market Risk
  • Liquidity Risk
  • Operational Risk
  • Reputation Risk
  • Equity Investment
  • Displaced Commercial Risk
  • Rate of Return Risk
  • Unique – Sharia Compliance Risk

Introduction to Islamic Investment & Insurance

  • Link to Sharia’a Precepts & Ethics
  • Key Islamic Issues
  • Moral Behaviour & Social Objectives
  • Introduction to Sukuk Bonds
  • Introduction to Islamic Mutual Funds
  • Islam and Insurance: What are prohibited?
  • Introduction to Takaful
  • Differences between Western and Islamic insurance
  • Limitations to Takaful


Upon successful completion of this training course, Newage Certificate will be awarded to the delegates.

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