Postgraduate Diploma in Islamic Banking & Finance
The aim of this qualification is to provide candidates with an introduction to Islamic finance and banking. They will review the fundamental principles underlying Islamic finance and learn about the main Shariah-compliant financial instruments. They will be introduced to the main operations of Islamic banking and learn about Islamic contracts and Islamic bonds. Their study will include practical applications of Islamic financial principles including those involving calculations. This qualification will also offer learners of financial management the basic fundamentals of Islamic Finance and Banking. The learner will cover aspects associated with Islamic Finance and Banking from the prohibitions in taking or receiving interest and will also explore how Islamic Banking and Finance principles have evolved into structures.
Course Aims
The aim of this qualification is to provide candidates with an introduction to Islamic finance and banking. They will review the fundamental principles underlying Islamic finance and learn about the main Shariah-compliant financial instruments. They will be introduced to the main operations of Islamic banking and learn about Islamic contracts and Islamic bonds. Their study will include practical applications of Islamic financial principles including those involving calculations. This qualification will also offer learners of financial management the basic fundamentals of Islamic Finance and Banking. The learner will cover aspects associated with Islamic Finance and Banking from the prohibitions in taking or receiving interest and will also explore how Islamic Banking and Finance principles have evolved into structures.
Benefits of the Qualification
The primary benefits of achieving this qualification is that learners will be able to:
- Develop the theories, tools and techniques for aspiring and existing senior managers / directors in the accounts and finance sectors
- Focus on current applied experience and practice and the underlying essentials of Islamic finance and banking from a strategic view point
- Progress to, and credit against the standards of master degree programmes in higher education institutions
Learning Outcomes
Essentials of Islamic Finance and Banking
- Understand the evolution of Islamic banking and finance principles
- Understand the differences between Islamic finance and banking and the conventional modes of finance and banking
- Understand aspects of Islamic banking and finance product and services markets
- Understand the governance of Islamic banking and financial
Entry Requirements
We make a professional judgement about the ability of a potential learner to successfully complete the programme of study and achieve the qualification, based on prior academic learning and/or prior relevant work experience.
Note:
This qualification is an endorsed qualification and for those who do not wish to gain credits for progression into further studies at Masters level.
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Structure
The qualification consists of the following four units:
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Principles of Islamic Finance
This unit introduces learners to the broad principles of Islamic banking and finance and the fundamental differences between Islamic and Western practices. The unit begins with the principles and history of Islamic finance and then explores differences between Western and Islamic financial practices. Learners will then develop their understanding of regulatory aspects, much of which are embedded in Islamic culture and the Koran, with limited formality for legal regulation. Learners will understand the importance of the Shariah Boards that govern practice in Islamic institutions, including their constitution of Islamic scholars.
- 1.1 Explain the importance of Shariah as the basis for Islamic finance Copy
- 1.2 Analyse the fundamental principles of Islamic finance
- 1.3 Compare and contrast the transactional and supervisory aspects of Islamic finance Copy
- 2.1 Explain the origins of modern Islamic finance
- 2.2 Analyse the reasons for recent growth in Islamic finance
- 3.1 Analyse the similarities and differences between Western and Islamic financial practices Copy
- 3.2 Compare and contrast the scope of Western and Islamic financial institutions Copy
- 4.1 Explain the legislation and regulatory framework that governs Islamic finance Copy
- 4.2 Analyse the role of the secular regulator/supervisor within an Islamic financial institution Copy
- 4.3 Assess the significance, functions and role of international Shariah standard setting bodies Copy
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Operational Islamic Finance
The concept of Islamic banking and finance is built on a range of products that are permitted (halal) and products that are prohibited (haram). Learners will develop their understanding of those products that clients can properly use for a range of different purposes, and those products that – through the ethics of Islamic finance – cannot be used. Learners will also develop their understanding of how the concept of insurance operates in Islamic finance through takāful. Whilst this has similarities to Western applications of insurance products, learners will explain how this is interpreted in the world of Islamic finance.
- 1.1 Explain using examples the activities that are permitted within Islamic finance Copy
- 1.2 Explain using examples the activities that are prohibited within Islamic finance Copy
- 1.3 Illustrate the contemporary use of Islamic finance through permitted activities Copy
- 2.1 Analyse the suitability of Islamic financial products for different financial needs Copy
- 2.2 Make recommendations for a suitable Islamic finance product to an organisation seeking finance Copy
- 3.1 Explain the concept and principles of takāful as an element of Islamic finance Copy
- 3.2 Compare and contrast the nature of takāful with conventional insurance Copy
- 3.3 Illustrate the application of takāful models to a specific Islamic finance situation Copy
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Economics in Finance & Banking
Unit purpose This unit introduces learners to the key elements of macroeconomics and their connection with financial markets. The unit aims to show how theoretical and empirical knowledge of macroeconomics and financial markets provides ways to analyse the salient problems faced by modern macroeconomic policy makers. Learners will study a range of topics in a real-world context, including concepts of economics in finance and banking, fiscal policies, and the effects of risk and uncertainty in finance and banking. They will also develop the skills they need to apply decision-making techniques in finance and banking.
- 1.1 Critically evaluate the models that explain the motivations and behaviours of economic agents in making investment decisions Copy
- 1.2 Critically analyse the frameworks explaining the behaviour of financial markets Copy
- 1.3 Evaluate the competing perspectives on the efficiency of financial markets Copy
- 2.1 Analyse how monetary policy can affect macro-economic activity through its interaction with financial markets Copy
- 2.2 Explain the relationship between financial markets and governmental fiscal policies Copy
- 3.1 Explain the factors that contribute to financial instability and the causes and effects of financial crises Copy
- 3.2 Evaluate strategies that can be used to reduce the risk of financial instability and crises Copy
- 3.3 Analyse real-world challenges facing macro-economic policy makers using theory and evidence Copy
- 4.1 Evaluate the factors critical to effective investment decision making Copy
- 4.2 Analyse and interpret financing and/or investment decision making using mathematical and statistical techniques Copy
- 4.3 Evaluate the financial consequences of real-world decision making Copy
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Islamic Finance and the Modern World
The role of Islamic finance in the modern world has developed at a rapid place and is exposing both Muslim and non-Muslim cultures to the benefits that it can offer. This unit will develop learners’ understanding of contemporary developments in Islamic finance and the risks that need to be evaluated in order for Islamic finance to operate effectively and to make a valuable contribution to the modern business world. Learners will also develop the skills needed to develop a research proposal for a contemporary issue, development or trend in Islamic finance and present their findings on the proposal.
- 1.1 Evaluate recent trends in Islamic finance Copy
- 1.2 Analyse challenges to the application of Islamic finance Copy
- 2.1 Explain the different types of risk that must be managed in Islamic finance Copy
- 2.2 Evaluate tools for managing risk in Islamic finance Copy
- 3.1 Define and justify the choice of a research question for a contemporary issue, development or trend in Islamic finance Copy
- 3.2 Explain the design of an appropriate research method to support the proposed research question Copy
- 3.3 Evaluate a range of information sources to make effective decisions around the collection of data Copy
- 3.4 Critically evaluate different approaches to data collection and analysis Copy
- 3.5 Propose solutions for potential issues of reliability and validity of data Copy
- 4.1 Record the findings on the proposed research question and methodology in an agreed format Copy
- 4.2 Present a summary of the findings of the research proposal to appropriate stakeholders Copy
- 4.3 Critically analyse the findings of the research proposal Copy
- 4.4 Make recommendations for development of the research proposal Copy
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- Level 2 course (as graded against the nationally accepted levels.
- Four modules with multiple choice questionnaires.
- 70% pass mark.
- Additional resources for further learning and printable modules for future reference.
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