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Department of Financial and Management Studies (DeFiMS)

Islamic banking and finance

Course Code:
15PFMC074
Unit value:
0.5
Taught in:
Term 2

The course aims to introduce students to a discussion of the main principles of Islamic banking and finance and to analyses of the relationship between Islamic banks and conventional banks evaluation of the current practices of Islamic banks, their merits and limitations. Numbers on this course will be limited; please see Dr Bassam Fattouh to apply for a place.

Objectives and learning outcomes of the course

The course aims to introduce students to a discussion of the main principles of Islamic banking and finance and to analyses of the relationship between Islamic banks and conventional banks and non-financial corporations in the Middle East and North Africa.  One objective is to understand the principles and practice of modes of Islamic finance for industry and commerce and explore their implications on investment and funding corporations and projects in the Middle East and North Africa.  Another objective is to enable students to evaluate the current practices of Islamic banks, their merits and limitations.

The course is designed to be studied without prerequisites in finance, economics, law or other subjects.  The academic elements of the course will be reinforced by contributions from practitioners to the international management programme's seminar series.

The learning objectives are to enable students:

  • To understand the main principles of Islamic banking and finance
  • To explain the rationale for the prohibition of riba and its consequences for savings and investment
  • To consider the nature and scope of Islamic finance and its relationship with conventional finance
  • To understand the long-term and short-term modes of Islamic finance for industry and commerce
  • To explore the range of Islamic financial instruments available for investors and corporations
  • To evaluate the current practices of Islamic banks and their relationship with non-financial corporations
  • To assess the merits and weaknesses of Islamic finance

Method of assessment

Assessment for this course is by one tutorial presentation at 10%; an essay of 4,000 words at 30%; an unseen written examination at 60% of the total grade; all elements except the presentation may be resubmitted