Masters in Islamic Banking and Finance

Introduction

Over the past two or three decades, Islamic banking and finance has emerged as another viable way of financial intermediation. It has gained credibility and has spread worldwide and is the preferred way of banking for one fifth of the world’s population. Our Master in Islamic Finance, Banking and Investment is one of the world’s leading program in this fast-growing field. It provides rigorous training in specialized areas of Islamic finance, banking and Risk management and their relevant conventional counterparts Studying for an MSc in Islamic Finance with us will give you advanced and structured insight into a wide range of subjects on which you can build your career in the Islamic finance space. Alongside an in-depth understanding of current issues including moral and ethical perspectives – you’ll develop the analytical and research skills to work in a range of general and subject-specific Islamic finance areas. This program provides a unique perspective on banking, finance and investments, combining conventional and Islamic views, enabling students to compare, contrast and learn the best of both.

Apply Now(For Fall 2016 Session)

Mission

  • To produce scholars of international standing in Islamic Finance.
  • To further develop and enhance the theory and practice of Islamic Banking and Finance.
  • To meet the demand for experts in Islamic Banking and Finance industry in Pakistan and worldwide
  • To help and facilitate the Islamization of Pakistan Banking Industry

Career Prospects

The course will prepare you to manage and advise on various value added financial products and services to customers in accordance with the Shariah principals. The range of careers encompassing Islamic based financial management include banking industry, accountancy, Financial advisory, product development, Investment management, merger and acquisitions, research , Risk Management and Islamic Insurance.

Courses

  • Islamic Financial System:The course is a practical approach to the workings of the present Islamic financial system. It goes beyond the definitions and, concepts provided in many Islamic finance courses.  The course encourages the students to understand the connection between the theory and the real world applications of the Islamic financial system. Students will also be able to link between the Islamic finance and the mainstream global financial system. Moreover, the course aims at enhancing the students’ analytical abilities and problem solving skills through thought provoking issues and real case studies. Other topics covered include the structure of the Islamic financial system and its philosophy, the Islamic markets such as the capital markets, money markets and equity markets,  Islamic financial institutions such as banks, regulation and supervision of Islamic financial system, the role of the central bank, globalization and integration of Islamic financial institutions.

  • Islamic Economics: This course on Islamic economics elaborates on the Islamic worldview and links it to economic life (Topic 1). To connect Islam, and its worldview to economics, the course discusses Islamic economic methodology, especially focusing on the shari’ah as the base of all values, principles and norms and its impact on model building (Topic 2). Topic 3 will present features of an Islamic economic system and undertake a comparative analysis of capitalism and socialism. Topic 4 will cover the three substantive areas of consumption, production and distribution in Islamic economics, focusing primarily on the distinction of its normative framework and technical/positive aspects. Topic 5 discusses issues relating to developing and implementing Islamic economics and finance, covering both intellectual challenges as well as case studies involving Muslim countries that require knowledge of the political and social environment of contemporary society and understanding the relationship between theory and practice.

  • Introduction to Islamic Finance and  Law of Contracts: The course discusses the basic principles underlying all contracts, which currently govern the practices in Islamic banking and finance and to understand the function of fiqh in providing the basis of the operation of the system. The principles of fiqh mu`amalat will be re-examined in detail to present good understanding of its application in modern mu`amalat instruments and to guide students with ability to develop new products in line with the Shari’ah requirements as well as to improve the Shari’ah quality in the existing products available in the industry. In line with the objective, the course expounds the bases and foundations of Islamic contracts on which the Islamic products are operated on, such as murabahah, bay bithaman `ajil, ijarah, bay al-dayn and the like; their modus operandi will be examined and the relevant issues will be highlighted.

  • Financial Accounting: Principles of Financial Accounting provide an introduction to the concepts and uses of financial accounting information in a business environment and its role in the economic decision-making process. Accounting is referred to as the language of business. Primary areas of study include the theory of debits and credits, special journals, the accounting cycle, notes and interest, receivables and payables, accruals and deferrals, measurement and valuation of assets and liabilities, the determination of net income (profit) and the preparation and Analysis of basic financial statements.Islamic Jurisprudence: This course will introduce concepts and principles of Islamic Law relevant to banking and finance.  It mainly deals with the sources of Islamic law, both primary and secondary as well as a though discussion on the concept and divisions of the Islamic legal ruling. It also exposes the students to Islamic legal maxims and their applications in cotemporary Islamic banking and finance. The course gives a special attention to maqasid al-shari’ah as being the Islamic legal philosophical framework in Islamic finance. Among the topics covered are sources of Islamic Law, Islamic Legal rulings, objectives of Islamic law (maqasid) and Islamic Legal maxims.

    • Broad accounting topic areas to be covered includes
    • Accounting as an information system
    • Measuring and reporting the operating cycle
    • Measuring and reporting long-term assets and long-term liabilities
    • Expanded presentation and analysis of accounting information
  • Islamic Capital Market: The course gives an overview of what a Shari’ah-compliance capital market (comprising the Islamic equity markets and Islamic debt market) is, and how an investor may use the various Shari’ah-compliance capital market products for raising funds and investment opportunities, and to diversify risk, both at IPO and secondary market trading levels. Shari’ah compliant securities listed on stock markets, Islamic mutual funds, Islamic unit trust funds, Shari’ah- compliant money market instruments and Islamic structured investment products are introduced, as are the roles of the various markets in the overall economic environment. Theoretical foundation and empirical cases relating to risks and potential rewards associated with the investment in Islamic capital market products, and which markets the investors are involved are also covered by this course. Divine principles relating to risk and return such as the one given in Surah TaHa; Verse 117, 118 and 119, explanations and illustrations by the Prophet Muhammad (P.B.U.H.), practices by traders-cum ulama and secular investment theories such as capital asset pricing model [CAPM], portfolio theory and few others are the key areas which will be dealt with under the study of theoretical foundation. Students taking this course will also be exposed to issues relating to regulatory and institutional frameworks and issues relating to integration of Islamic capital market with the conventional and global markets.

  • Deposits and Financing Operations of Islamic Banks: Islamic Financial Reporting: This course introduces accounting framework, standards and practices of Islamic banks, financial institutions and financing instruments.  The accounting treatments and disclosures of various Islamic financing activities related to Islamic deposits, Islamic equity financing, Islamic asset financing are explained.  Other related areas such as zakat, auditing and Shari’ah Supervision of Islamic financial institutions are further elaborated.

    • Islamic working capital financing
    • Islamic Trade Financing (import and export products)
    • Islamic consumer Financing
    • Mortgages finance (diminishing musharaka and murabaha).
    • Operating and financial lease (Ijara)
    • Project finance-Istisna
    • Agriculture finance salam
  • Risk Management in Islamic Financial Institutions: The  course covers a wide range of topics that deal with risk management.  As Islamic Banking and Finance is an integral part of the financial system there is a need to adhere with the principles of Shari’ah that has a different emphasis in risk management compared to conventional bank. It is indeed important to understand the risk exposure and the issue that is faced by Islamic banks to ensure that they continue to provide financial services that is efficient and reliable so that it can match the robustness in the economy. and safeguard itself  from financial crisis. Hence, this course will enlighten the students on   various risk management instruments and risk management techniques from both conventional and Islamic perspective.

  • Ethics and Governance of Islamic Financial Institutions: The course deals with theoretical and practical aspects of ethic of corporate governance (CG) and corporate social responsibility (CSR) in the operation of Islamic Financial Institutions (IFIs). It basically examines how operation of IFIs are directed and controlled to accomplish their objectives, which can be financial or/and otherwise. The processes expose the students to distinctive features and levels of effectiveness of the CG and CSR when they are founded on Islamic ethical concepts and Shari’ah principles such as Islamic world view, Islamic ethics and Shari’ah principles. The areas covered by this course are analysis of application of various theories of organization, regulatory and prudential standards such as IFSB’s prudential standards and guidelines of the central banks; and divine principles and guidelines as being revealed in the Our’an and explained by the Sunnah such as trust (amanah) and sincerity (truthful and transparent), in designing and implementing the corporate governance structure and evaluation of their impacts on the performance of IFIs.

  • Islamic Banking Products and Services: The course covers various topics focusing on Islamic banking products. The main areas are deposits, finance and investments. In the consumer area, it includes retail deposits and financing products. It will also cover specific issues on financial market such as Islamic money market, Islamic bonds market, Islam capital market and Derivatives. The modes of teaching are lectures, discussion and group project. Students are also required to make presentation of the project upon completion.

  • Shariah Issues in Islamic Finance: 

    • Shariah issues in Mudaraba, musharaka, Istisna, salam, Ijara, Diminishing Musharaka.
    • Different Islamic banking offer different products.
    • Some are deemed unlawful by other Islamic banks.
    • The Shariah procedures of the same product differ in Islamic banks.
    • Reason: Conflict of Fatawa (legal opinions of Shariah scholars).
  • Asset Pricing and Islamic Derivatives: The course provides an introduction to the primary instruments of the derivative securities market. Emphasis will be placed on real-world applications of theoretical (or conceptual) material discussed in class. After developing the ideas of static and dynamic arbitrage, the course ends with the lectures applying the basic concepts to dierent business settings, from capital budgeting to risk management. The course is particularly important for anyone going into finance, but stress will be given to topics that are of relevance for general managers.
  • Financial Management and Islamic banks: The course aims to provide students with the knowledge and understanding required for managing the financial aspects of a bank’s business. By studying the management of a bank’s assets and liabilities, students will develop a good understanding of the nature of the business of banking. It will develop some of the financial techniques introduced in the core finance classes to consider the decisions and policies of Islamic banks. It contributes to the course aims of using financial theory and analysis in understanding the operations of banks. The class provides students with an understanding and appreciation of the various financial management techniques used by banks.
  • Research Methodology: This course is intended to equip postgraduate students with research tools and processes that can assist them in the preparation of research proposals that may eventually lead to successful completion of their dissertations. The course will cover both qualitative and quantitative methods, using both primary and secondary data. The course will use a hands-on approach, to ensure that students are able to personally carry out business-related research projects.

  • Financial Statement Analysis: This course will provide you with tools to analyze and exploit information in corporate financial statements. The course will teach you how to use financial statement information for firm valuation and other economic decisions. The course will also help you understand and analyze the issues that corporate managers face as they design and implement financial reporting strategies, increasing your ability to assess accounting quality, and detect and undo earnings management. The six-step analytical framework and practical tools of this course will help you to improve your ability to read and analyze financial statements, which should be useful whether your career interests arise in finance, marketing, strategy, consulting, accounting, operations, or entrepreneurship.

  • Product Development for Islamic Financial Institutions: The Islamic Finance industry is in the nascent stages of development. Therefore it is imperative for market participants to undertake a high degree of product innovation, to maintain a market leading, competitive positioning. The Islamic Product Development course provides understanding and basics for new product development design and implementation. The course combine the deep knowledge of Islamic financing techniques with a comprehensive understanding of tax and regulatory requirements to assist in the development of market leading products in line with Sharia’a requirements.
  • Islamic Micro Finance: Microfinance provides financial services to the poor and has often been touted as a model example of a social entrepreneurship innovation that addresses both social and economic problems. However, it has been under scrutiny of late in light of concerns over consumer protection and increasing commercialization of the field, and questions remain about its effectiveness in lifting its clients out of poverty. The class will address these issues from both a philosophical and developmental perspective and provide in-depth discussion on the emerging issues in the microfinance world. The class will be organized into three sections. The first section introduces the un-banked cohort and explains the need to design financial tools that specifically target this population. Section II focuses on what works, what doesn’t and why. The section provides analytical frameworks that underpin the design of microfinance tools and identifies areas where challenges and controversies exist in microfinance. The final section documents creative and innovative approaches that are currently being mainstreamed and provides insights on how the microfinance frontier could be extended. The objective is to prepare students to take on roles as policy analysts and technical advisers on Microfinance and Development in foundations, governments, multilateral development institutions and international agencies. Participants will have an appreciation of the broader context that underpins the microfinance field; understand how and why the formal credit market fails to meet the financial needs of the poor; be knowledgeable about the challenges and controversies facing Microfinance, and be equipped with a framework to objectively examine and assess these issues.
  • Takaful and Actuarial practice: This course exposes students to the principles and practical framework within which the Takaful and Re Takaful industries in the contemporary global market operate. It covers the shari’ah and legal frameworks and addresses a number of operational issues in Malaysia and abroad. The course includes topics such as concept of Takaful and Re Takaful, Models of Takaful, Comparison between Takaful and Conventional Insurance, Risk Management in Takaful, Examination of Takaful Act 1984, Nomination, Insurable Interest, Surplus Sharing, Accounting Treatment in Takaful, and Supervision of Takaful in Malaysia.
  • Islamic Wealth Planning and Management: The course covers various topics focusing on Islamic wealth management. Compare and contrast will be made with conventional practices to understand their differences. The main areas are investments, takaful, and estate distribution. In the area of investment the products include deposits, financing, unit trust and property investment. Takaful will include models using Mudharabah and Wakalah. In the area of estate distribution, hibah, wassiah, faraid and waqaf modes will be discussed. The methods of teaching are lectures, discussion and group project. Students are also required to make presentation on the project upon completion.
  • Investment Analysis and Portfolio Management: Investments can be thought to be composed of two branches: security analysis and portfolio management. We will begin by looking at the financial markets and the concept of risk/return; then we will examine modern portfolio theory, including market efficiency and behavioral finance. The nature of investor objectives, their risk tolerance, asset allocation decisions and performance evaluation issues will be explored. To reinforce the major concepts of the course, students will participate in a real time exercise of portfolio management. The second half of this course delves into security analysis, which is concerned with the selection and timing of financial and real securities. In this course we will be involved with the analysis, selection and trading of common stock, bonds, mutual funds and exchange-traded funds. Issues concerning  macroeconomics, industry and sector analysis, alternate (qualitative and quantitative) methods of valuation. The timing of buy/sell decisions, etc. will be explored. We will conclude the course by examining the emerging field of derivatives to include: option securities, payoff patterns and pricing, option strategies, and applications in risk management

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