Professional Diploma in Islamic Banking & Finance

This unit develops a critical understanding of the origin and evolution, concepts and aims of the Islamic moral economy at micro and macro levels, including Islamic finance as practical tool of Islamic economics. The unit covers a number of themes including: an overview of the foundation of Islamic moral economy and economic analysis of the prevailing theories, Islamic macroeconomic theories and the major structural themes of Islamic economics related to the voluntary sector, prohibitive elements in market transactions, and appraisal of the factors of production from an Islamic perspective. 

This unit covers the differences of Islamic and western banking and insurance models in terms of conceptual framework, governing principles, governance system, business model, and product level differentiation. It explores how Islamic principles have evolved into structures of products, services, control, and governance system in Islamic banking and takaful industry. 

This unit provides an opportunity for you to develop further as an independent learner through the completion of a supervised project, which can include some elements of research carried out in a fieldwork context. It also explores a range of methods appropriate to a range of disciplines including entrepreneurship, banking and finance, management, and sustainable development and aims to develop your analytic skills, which are essential aspects of conducting independent projects. At the end of the unit, you will be required to produce a mini dissertation of 6,000 – 8,000 words. 

This unit covers the differences of Islamic and western core concepts, principles, and objective of conventional accounting, and accounting regulatory standards differences for banking and insurance. It also covers accounting for all transactions of Islamic banking, including accounting for sales-based transactions (murabahah, salam, istisna); investment-based transactions (mudharabah, musyarakah); lease-based transaction (ijarah), and socio-objective transactions (qardh hassan, zakah). A topic on financial statement analysis will be covered to equip you with the necessary tools to assess performance of Islamic financial institutions. 

This unit covers the sources, concepts, and principles of Islamic law, including Islamic juristic system and its application in economic and commercial transactions (muamalah). It also develops an understanding of the law in muamalah within Islamic judicial framework, its scope, and some prohibitions. The unit is linked to the Applied Islamic Banking and Insurance unit and Islamic Accounting and Auditing, so that you are conversant with all the Islamic principles and structures behind Islamic Banking and Insurance and can be empowered to engage in its application. 

This unit examines the concepts, types, frameworks and techniques of Islamic finance available for the community to raise the required funds for embarking on the business enterprise. It explores Islamic financial products, the types of Islamic financial and capital markets, Islamic financial instruments available, the nature of trading, advanced Islamic financial instruments, Islamic finance innovation such as crowd financing, fintech and others. The unit also develops deeper analytical and theoretical insights of regulatory frameworks and instruments of Islamic commercial law used in a range of contexts. 

Risk management is central in operations of financial institutions, both from business and regulatory perspectives. From a business perspective, profitability and stability of banks depend on how risks associated with financing are managed. On the regulatory side, the Basel regulations focus on the risk-based capital in banks making risk management an integral part of these institutions. Islamic banks face two types of risks that are like those faced by traditional financial intermediaries and risks that are unique to them due to their compliance with Shariah law. This unit examines the risks that face the financial institutions in general and Islamic banks in particular from both business and regulatory perspectives.