BNK610 : Islamic Banking Practices

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Course Info

Course Category

Accounting, Banking & Finance

Course Level


Credit Hours





Dr. Atiq-uz-Zafar
PhD Economics
International Islamic University Islamabad

Course Contents

·         Introduction to Islamic Economic System

·         What is Economic system? Definition and basic Ingredients

·         Criteria to Judge the distinctiveness of an economic system

·         Basic Principles of Capitalism

·         Basic Principles of Socialism

·         Basic Principles of Islamic Economic System: The major sources

·         Nature of Economic Freedom in Islam

·         Incentive mechanism: Achievement of Falah

·         Economic Decision Making

·         Distribution of Income in Islam

·         Salient Features of Islamic Economic System

·         Islamic Law of Business Contracts: Meaning and Types of contracts

·         Khiyarat (Options) in Islamic Contract

·         Guiding Principles Regarding Islamic Finance

·         Major Prohibitions

·         Prohibition of Riba in the Qur’an

·         Prohibition of Riba in the Ahadith

·         Rationale of prohibition of Riba

·         Riba and Bank Interest

·         Prohibition of Gharar

·         Prohibition of Qimar

·         Prohibition of Khilabah and Gishsh

·         Prohibition of combining two or more contracts in one contract

·         Free mutual consent

·         Rule of General permissibility

·         Principle of al-Kharaj-u-bid Daman

·         Objectives of Sharia’h

·         Concept and Rules of Loan (Qarz) and Debt ( Dayn)

·         What is a Bank - Meaning and History

·         What is a Bank - Functioning

·         What is a Bank - Need of banks?

·         What is a Bank - Role in International Trade?

·         Role of Banks on the Economy

·         Working of a commercial Bank

·         Liability side of a Bank

·         Assets side of a Bank

·         Objections on banking system

·         What is Islamic Banking?

·         Deposits in Islamic banking

·         Assets side of Islamic Banking

·         Trade based Modes (1)

·         Trade based Modes - Objections on Murabaha

·         Trade based Modes - Risk Mitigation

·         Trade based Modes - Murabaha in Import

·         Trade based Modes - Murabaha in Export

·         Trade based Modes - Salam

·         Salam in Currency

·         Salam as a Mode of Finance

·         Trade based Modes - Istisna''

·         Controversial Trade based Modes

·         Ijarah

·         Participatory Modes - Shirkah

·         Participatory Modes - Mudaraba

·         Participatory Modes - Musharakah vs Mudaraba

·         Participatory Modes - Diminishing Musharkah

·         Participatory Modes - Running Musharkah

·         Participatory Modes - Securitization on Musharkah

·         Participatory Modes - TFC on Musharkah

·         Suitable Modes of Financing

·         Specific Areas of Financing

·         Sharia’h Governance in IB

·         Islamic banking Industry in Pakistan

·         Risk Management in Islamic Banking

·         Insurance and Takaful

·         Microfinance

·         Money and Capital Markets

·         Global Islamic Finance Industry

·         Issues and Challenges