FIN264 : Fundamentals of Islamic banking

Department

Department of Financing and Banking

Academic Program

Bachelor in Finance and banking

Type

Compulsory

Credits

03

Prerequisite

FIN160

Overview

The course is concerned with introducing the student to the concept of Islamic banks, their objectives and characteristics, and identifying the formulas and tools of Islamic finance, as well as identifying the most important obstacles to the work of the Islamic bank.

Intended learning outcomes

A. Knowledge and understanding:

• To familiarize the student with the concept and nature of Islamic banks, and the difference between Islamic banks and conventional banks.
• To familiarize the student with the most important tools of Islamic financing formulas.
• For the student to identify the most important obstacles to Islamic banking.

B. Mental skills:

• That the student be able to clarify the principles, foundations and concepts of Islamic banks.
• That the student be able to understand the formulas of Islamic finance.
• That the student be able to know the obstacles to the banking business.

C. Scientific and professional skills:

• That the student compares between Islamic and conventional banks.
• That the student be able to interpret the formulas of Islamic finance.
• That the student be able to analyze the obstacles to banking work.

D. General and transferable skills:

• The student should be able to understand and differentiate between conventional and Islamic banks.
• That the student responds to the suspicions that hinder the Islamic investment formulas.
• That the student proposes solutions to develop the Islamic banking business.

Teaching and learning methods

1. Study lectures.
2. research paper.
3. Training the student to prepare a short research.

Methods of assessments

1. Midterm exam 20%.
2. Research paper 10%.
3. Activity 10%.
4. Final exam 60%.

Course content

Number of hours	scientific subject	Week
3	Definition and establishment of Islamic banks.	1
3	The difference between conventional banks and Islamic banks.	2
3	Islamic bank budget and sources of funds in Islamic banks.	3
3	Partnership, speculation, leasing, murabaha, and installment sales.	4
6	Salam contract, Istisna’a contract, supply contract, agricultural financing formulas, and tawarruq operations.	5-6
3	Methods of Islamic banking services.	7
3	Methods of investment of Islamic banks in the financial market.	8
3	Sharia and banking supervision in Islamic banks.	9
3	Distribution of profits in Islamic banks.	10
3	The relationship of the Islamic bank with the central bank.	11
3	The social activity of Islamic banks.	12
6	Obstacles to Islamic banks and how to address them and evaluate the performance of Islamic banks.	13-14

Portfolio theory (FIN361)
Audit and control of banks (FIN465)
Various insurance (FIN464)
Re Insurance (FIN463)
Finance and real estate investment (FIN462)
Contemporary financial issues (FIN460)
Quantitative methods in finance (FIN369)
Takaful insurance (FIN368)
Financial indicators and investment funds (FIN367)
International investment (FIN366)
Financial derivatives (FIN365)
Securities and currencies analysis (FIN364)
Advanced corporate finance (FIN363)
Investment evaluation (FIN362)
Corporate finance (FIN360)
Financial analysis and forecasting (FIN269)
Financial institutions (FIN268)
Banking operations and policies (FIN267)
Financial markets (FIN266)
Islamic financing and investment formulas (FIN265)
Fundamentals of Islamic banking (FIN264)
Insurance basics (FIN263)
Financial policies (FIN466)
International Finance (FIN467)
Financial management (FIN260)
Strategic financial analysis (FIN468)
Banking marketing (FIN469)
Planing peincipals (PLA170)
Financing Principles (FIN160)
Accounting Principles I (ACC 130)
Principles of Accounting II (ACC131)
Investing basics (FIN262)
Banking basics (FIN261)