110-418 Islamic Banking and Finance

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

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 the growth of Islamic banking from the 1960s onwards into an international multi-billion dollar venture covering both the Islamic and non-Islamic worlds; the relationship between finance and Islamic law; basic principles of Islamic economics; the framework of Islamic finance; the nature of Islamic banking and finance; the concept of money in Islam; the prohibition of interest; the ethical dimension of Islamic banking; the financing mechanisms used in Islamic banking; and the 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. Students will also explore how Islamic banking differs from the conventional interest-based banking system.

A 2-hour examination and an essay of 2000 words or written work totalling 4000 words for third year. A 3-hour written examination and written work of 2000 words or written work totalling 5000 words for fourth year. Distance education students: One 3-hour written examination (65%) and a research paper of 2000 words (35%). Masters students will be required to do some extra background reading and to present their written work in a more research-oriented mode.

Materials prepared by the institute.