Lecturer:
Dr Victor Murinde
Introduction and Aims
Islamic Banks, unlike their conventional (non-Islamic) counterparts, mobilise funds mainly through investment accounts using profit-sharing contracts. In addition, the banks conduct their transactions in compliance with Shariah (Islamic Law). ‘Shariah compliance’ does not allow the receipt and payment of interest (riba) and has other ‘ethical’ implications (e.g. investment in companies producing or vending alcoholic drink and gambling is non-complaint). This module explains how and why Islamic contracts and instruments in banking and finance have been developed and applied in modern practice in industrial as well as developing market economies, including the UK.
Objectives and Learning Outcomes
By the end of the module students should be able to:
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Explain the ethical underpinnings of Islamic finance
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Demonstrate knowledge of Islamic financial instruments
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Demonstrate knowledge of Islamic Finance in practice
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Demonstrate knowledge of evolving Islamic Financial instruments (e.g. bonds) and practice (e.g. insurance)
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Explain the nature of Islamic financial risk management and regulation and be able to compare it with ‘western practices
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Demonstrate understanding of the nature of corporate governance in an Islamic system and be able to contrast it with ‘western’ systems
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Explain the implications of ‘Islamisation’ for economic development and financial stability
Assessment
Individual Assignment 5,000 words (100%)