What is Islamic Finance

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IM Learning

Last Update 21 Dec 2021

In this programme, we will delve into the world of Islamic finance, explore the processes and provide examples of market application.

Code: PG44003

SECTION 1

What is Islamic Finance 13m 01s

Introduction Preview Nature of Money How Money Originated Riba and Money Rules of Islamic Finance Contracts Contracts of Partnership & Exchange Case Study of EFC Group Acquisition Summary of the Differences Between Conventional and Islamic Finance

What is Islamic Finance Quiz

SECTION 2

Evolution of Islamic Finance 12m 28s

Introduction Preview Origins of Islamic Finance Development of Modern Islamic Finance - Egypt 1960s Era Development of Modern Islamic Finance - United Arab Emirates 1970s Era Development of Modern Islamic Finance - Malaysia 1980s Era Development of Modern Islamic Finance - Bahrain 1990s Era Development of Modern Islamic Finance - London 2000s Era The Future of Islamic Finance

Evolution of Islamic Finance Quiz

SECTION 3

In this module, we will be discussing the rules and principles of Islamic Finance and how the application of these rules lead to the development of new products and markets in the global Islamic banking industry.

Principles of Islamic Finance 15m 43s

Introduction Using Money in a Shariah Compliant Manner Transformation of Money in Prohibition of Riba Shariah Rules on How Money is Used Contracts that are allowed in Islamic Finance Main Rules on the Nature of the Assets Market Example of Derivatives Summary

Principles of Islamic Finance Quiz

SECTION 4

In this module, we will define what the Islamic banking market is and discuss the reasons for its continued growth today.

Islamic Finance Industry 27m 49s

Introduction Size of Total Assets in the Industry Shares of Global Islamic Banking Assets Islamic Banking Assets Islamic Retail Banking Products Corporate and Investment Banking Products Islamic Investment Funds Different Models of Islamic Finance Other Factors Involving Islamic Finance Islamic Banking: Not just for Muslims Role of Conventional Banks and Markets in Islamic Banking Activities in Islamic Banking in Different Market Sectors Key Points of Islamic Banks Shariah Compliant Equity Markets Shariah Compliant Financial Structure Shariah Compliant Screening Process Dow Jones Index: Global vs Islamic Comparison Definition of Capital Markets Types of Capital: Equtiy and Debt Islamic Finance Debt Capital Markets Islamic Investment Funds Growth Islamic Fund Assets by Geographical Focus Islamic Fund Assets by Asset Class Concept of Takaful Takaful Structure Application of Conventional Insurance Application of a Takaful model Number of Takaful Operators Gross Contributions by Country Kinds of Takaful Products

Islamic Finance Industry Quiz

SECTION 5

Murabaha 09m 19s

Definition of Murabaha Murabaha Application Example Murabaha Financing Module Summary

Murabaha Quiz

SECTION 6

Musharakah 02m 55s

Definition of Musharakah Musharakah Application Example Profit Share Percentages Loss Share Percentages When can a Musharakah contract be used?

Musharakah Quiz

SECTION 7

Mudaraba 09m 30s

Definition of Mudaraba Mudaraba transaction with only one investor Mudaraba transaction with more than one investor Certificate of Deposits to follow an Investment Mudaraba Model Shariah Restriction on Commodity Murabaha Commercial Restriction on Certificate of Deposits

Mudaraba Quiz

SECTION 8

Wakala 03m 29s

Definition of Wakala Example: Application in Money Markets Utilisation of Profit Module Summary

Wakala Quiz

SECTION 9

In this module, we will define what an Ijara contract is and provide some examples as to its application in the market.

Ijara 03m 31s

What is an Ijara Contract? Terminologies Applicable to Ijara Contracts What are the Types of Ijara Contracts? Rules that Apply to an Ijara Contract Market Application of Ijara Contracts

Ijara Quiz

SECTION 10

Musawama 08m 57s

Definition of Musawama Musawama Application Example 1 Always Used with a Wa’ad Shariah Approval for a Musawama Contract Musawama Application Example 2

Musawama Quiz

SECTION 11

Wa'ad or Undertaking 04m 01s

Definition of Wa'ad Undertaking is Binding only to one Party Wa'ad Application Terminologies

Wa'ad or Undertaking Quiz

SECTION 12

Arbun 04m 56s

Definition of Arbun Market Application Example Real World Application on Financial Markets

Arbun Quiz

SECTION 13

In this module, we will define what a Salam contract and an Istisna contract are and highlight the key similarities and differences between them.

Salam and Istisna 06m 30s

Inroduction Definition of Salam Contract Definition of Istisna Contract Comparison Between Salam and Istisna Contracts

Salam and Istisna Quiz

SECTION 14

In this module, we will look at the use of Murabaha for car financing through a market application example.

Murabaha - Car Finance 05m 25s

Introduction Preview Murabaha Car Finance in Textbook Structure Murabaha Car Finance in Real Life Market Example: Boubyan Bank Murabaha Financing Calculator Market Example: Transaction Flow

Murabaha - Car Finance Quiz

SECTION 15

In this module, we will highlight how a Murabaha contract is applied in corporate financing through market examples.

Murabaha - Corporate Financing 08m 50s

Corporate Financing Overview Market Example: Corporate Financing Commodity Murabaha Transaction Flow Market Application: Profit Payment Frequency New Transaction Method of Cash Flows in a Murabaha Structure Cash Flow for the First Year Transaction in terms of Profit Payment Cash Flow for the Second Year Cash Flow for the Third Year Application of Netting in Practice

Murabaha - Corporate Financing Quiz

SECTION 16

In this module, we will look at how banks use a Murabaha contract for home financing.

Murabaha - Home Finance 06m 18s

Introduction Text Book Example: Property as Underlying Asset Real Life Example: Relevant Term of Financing Computation Market Application of Murabaha Home Financing

Murabaha - Home Finance Quiz

SECTION 17

In this module, we will look at how we can use a Murabaha contract to structure a money market deposit.

Murabaha - Money Market Deposits 10m 07s

Introduction Cash Flows in a Conventional Deposit Example: Murabaha Contract Calculation Transaction Flows Observations Market Example: Balance Sheet

Murabaha - Money Market Deposits Quiz

SECTION 18

In this module, we will highlight how a Murabaha contract is applied in personal loans through market examples.

Murabaha - Personal Loans 03m 31s

Overview of Personal Financing Murabaha Finance Example: Riyad Bank Website Market Example: Murabaha Personal Financing Summary

Murabaha - Personal Loans Quiz

SECTION 19

In In this module, we will look at how we can structure a home financing transaction by using the Musharakah contractual form in conjunction with an Ijara or leasing contract.

Musharakah - Home Finance 07m 40s

Overview of Home Financing Example: Market Transaction Calculation Home Financing Quick Recap Market Example: Meezan Bank Home Payments Calculator Market Example: Details Payment Schedule

Musharakah - Home Finance Quiz

SECTION 20

In this module, we will look at a Musharakah Sukuk structure and its market application through examples.

Musharakah - Sukuk 06m 01s

Introduction Musharakah Sukuk Overview Market Example: Obligor and SPV Unit Ownership Market Application: Sukuk Profit Payment Dates The Role of Obligor as a Managing Agent in a Musharakah Structure Module Summary

Musharakah - Sukuk

SECTION 21

In this module we will highlight one of the applications of a Mudarabah contract, a retail bank Deposit Account.

Mudaraba - Deposit Account 05m 30s

Introduction Market Application: Maybank Islamic Malaysia Computation of Indicative Profit Rates Questions asked by an Investor Examining the Product Disclosure Sheet Shariah Compliant Assets that the Bank can Invest in Fund Performance Chart: Returns vs Benchmark Maybank Islamic Risks Disclosure Statement Summary

Mudaraba - Deposit Account Quiz

SECTION 22

In this module, we will look at the application of a Mudarabah contract to create a fund.

Mudaraba Fund 06m 35s

Introduction Overview of Commodities Fund Al Rajhi Commodities Mudaraba Fund Objective Terms and Conditions of the Fund Basic Mudaraba Contract Profit Split What is the Fund Investing in?

Mudaraba Fund Quiz

SECTION 23

Ijara - Car Finance 03m 00s

Introduction Market Application Example: Bank Alfalah (Pakistan) Car Ijara Financing What is Alfalah Car Ijarah? How the Bank retains Ownership and all its Risks Car Ijara vs Conventional Leasing The Bank insures the car with a Takaful Model Summary

Ijara - Car Finance Quiz

SECTION 24

In this module, we will see how we can use an Istisna contract for a Sukuk transaction.

Istisna - Sukuk 04m 29s

Introduction Market Sample: Istisna Sukuk Role of the Obligor in an Istisna Sukuk Transaction Overview of the Life of Sukuk Project Assets at Maturity Summary

Istisna - Sukuk Quiz

SECTION 25

In this module, we will provide an overview of the Sukuk process and provide examples of its market application.

Introduction to Sukuk 05m 01s

Introduction to Sukuk Limitations of Debt in a Sukuk Transaction What is a Sukuk Certificate? The Process of Sukuk Issuance

Introduction to Sukuk Quiz

SECTION 26

Market Players 10m 32s

Participants in Islamic Banking Regulation of Islamic Banks Regulatory System Examples of an Islamic Bank's Assets Financial Statements for Islamic Banks Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) Islamic Financial Services Board (IFSB) International Islamic Financial Market (IIFM)

Market Players Quiz

SECTION 27

In this module, we will discuss some of the challenges and opportunities that the Islamic finance industry is facing as it continues to grow across key markets.

The Future of Islamic Finance 17m 48s