110-093 Islamic Banking and Finance

Availability

Credit Points

Coordinator

Prerequisites

Students enrolling in this subject should normally have some familiarity with banking, finance or economics.

Semester

Contact

Subject Description

This subject will introduce students to the nature and foundations of Islamic law and the important role it plays in the economic and financial institutions in the Muslim World. It will explore (a) the development and growth of Islamic banking from the 1960s onwards to an international multi-billion dollar venture covering both the Islamic and non-Islamic worlds; (b) the relationship between finance and Islamic law; (c) basic principles of Islamic economics; (d) the framework of Islamic finance; (e) the nature of Islamic banking and finance; (f) the concept of money in Islam; (g) the prohibition of interest; (h) the ethical dimension of Islamic banking; (i) the financing mechanisms used in Islamic banking; and (j) supervision of Islamic banks both by the central banks and by the Shari'ah supervisory boards. A number of case studies of Islamic banks will be examined as well as key contracts and financial statements. It will also explore how Islamic banking differs from the conventional interest-based banking system.

Assessment

Either a 2-hour examination or an essay of 2000 words, and written work, totalling 4000 words 3rd-year 5000 words for 4th-year.

Prescribed Texts

Materials prepared by the Institute.