Islamic Banking for Professionals

Course Description
This 2-day training event for banking professionals is designed to provide a practical understanding of the principles, nature and form of Islamic Banking as is relevant to those entering the financial services market in the UK and Europe. There is a practical focus on Islamic banking, finance and wealth management products.

Learning Objective
Participants will gain the knowledge of and appreciate the purpose and need for the different principles involved in Islamic Banking and how they differ from Western banking models.

Who Should Attend
Banking professionals seeking a practical understanding of the nature and form of Islamic Banking.

Teaching Methodologies
Classroom lectures and interactive practical workshop format intended to affirm the learning objectives.

Learning Pre-requisites
An intermediate level of understanding of retail banking practices, operations and regulation.

Course Content
Session 1: Understanding Islamic Banking

• History of Islamic Banking
• Basic Principles
• Differences between Islamic Banking & conventional alternatives
• Case Study: Consider why you might approach some of your customer base to discuss Islamic Banking and how that might be handled.
• Case Study: Consider whether Islamic Banking can offer a solution on its own or in conjunction with conventional banking products.

Session 2: Islamic Banking Products

• Shariah Advisory Council/Consultant
• Islamic Finance Products
• Sale & Buy Back (Bai’al-Inah).
• Deferred Payment Sale (Bai’ Bithaman Ajil)
• Credit Sale (Bai Muajjal)
• Case Study: Looking at the 3 Finance Products discussed consider ways that these might be used with your client base.
• Case Study: Having considered the above, how might you ensure that your bank achieves the required return and how might this compare with the return seen from conventional banking products.

Session 3: Islamic Banking Products (cont.)

• Islamic Finance Products
  • Contract for sale of goods with advance payment (Bai salam)
  • Leasing (Ijarah)
  • Hire Purchase (Ijarah Thumma Al Bai’)
  • Rental with Ownership (Ijarah-Wal-Iqtina)
• Case Study: Looking at Bai salam consider what type of client you might use this with and how both the client and the bank might benefit.
• Case Study: Consider the differences between Leasing, Hire Purchase & Rental with Ownership and how they might be used with particular clients.
• Case Study: Compare these products with conventional banking products.

Session 4: Islamic Banking Products (cont.)

• Islamic Finance Products
  • Advance Payment against contractual agreement (Istisna’a)
  • Profit/Loss Sharing (Mudarabah)
• Case Study: Consider the type(s) of clients who might want to make use of these facilities and how these might be structures for the best benefit of your bank.

Session 5: Islamic Banking Products (cont.)

• Islamic Finance Products
  • Cost Plus + (Musawamah)
  • Joint Venture (Musharakah)
  • Benevolent Loan (Qardul Hassan)
• Case Study: Consider the type(s) of clients who might want to make use of these facilities and how these might be structures for the best benefit of your bank.

Session 6: Practical review of Islamic Finance Products

Case Study: A new SME client is looking to start his business and requires your assistance. They have heard about Islamic Banking products and are keen to know what might be available to them. Forecasts are attached and you should consider what products might be applicable for this client.

Case Study: A long standing SME client is looking to build a new factory for which they have available £100K of the potential £250K, what Islamic Banking products might you make available and on what structure. You have historic records for your customer and forecasts are attached.

Case Study: Looking at the last case how might this differ using conventional banking products.

Case Study: You have been approached by a personal customer looking to borrow £10K to purchase a new car costing £15K, what Islamic Banking products might you offer.

Case Study: A long standing client has won a major contract but will need funding for up to 6 months before getting paid by his highly rated client, forecasts are provided showing profitability on this transaction. What Islamic Banking products might you offer?

Case Study: Looking at this last case how might this differ using conventional banking products.

Case Study: You have the opportunity to quote for the business of a long standing target client of your bank. They are looking to replace equipment costing £100K within their premises for which they have available old equipment which should realise £20K and £10K in cash. Forecasts are attached. What Islamic Banking products might you offer?

Session 7: Islamic Wealth Management Products

• Takaful Savings
• Gift (Hibah)
• Safe Keeping (Wadiah)
• Islamic Life Insurance & Bancassurance
• Islamic Bonds (Sukuk).
• Agency (Wakalah)

Case Study: A long standing client of the bank has decided that they no longer wish to receive interest on their deposits but remain concerned about protecting their position, what Islamic Banking products might you offer them?

Case Study: A non customer of your bank wishes to deposit £1M with you and his indicated that they would like to consider Islamic Banking products, what considerations should you have regarding this request.

Session 8: Legal Issues & Review

• Legal issues & potential conflicts.
• Review
  • Background to Islamic Banking.
  • Finance Products.
  • Wealth Management Products.

State of the art facilities
Delegates can study in our comfortable hi-tech learning environment in London, near Liverpool Street Station.

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Islamic Banking for Professionals

Course Venue: London EC2

information@premiercs.co.uk