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Durham University

Postgraduate Modules 2019/2020

Module Description

Please ensure you check the module availability box for each module outline, as not all modules will run in each academic year. Each module description relates to the year indicated in the module availability box. Please be aware that modules may change from year to year, and may be amended to take account of, for example: changing staff expertise, disciplinary developments, the requirements of external bodies and partners, and student feedback.

No such Code for pgprog: N3K807

Department: Economics and Finance

ECON47115: Islamic Banking and Finance

Type Tied Level 4 Credits 15 Availability Available in 2019/20
Tied to N3K809 Islamic Finance
Tied to N3K807
Tied to N3K909 Islamic Finance and Management
Tied to N3K109 Finance
Tied to N3K209 Finance (Accounting and Finance)
Tied to N3K309 Finance (Corporate and International Finance)
Tied to N3K609 Finance (International Banking and Finance)
Tied to N3K709 Finance (Economics and Finance)

Prerequisites

  • None

Corequisites

  • Islamic Law and Financial Transactions

Excluded Combination of Modules

  • None

Aims

  • To provide students with an advanced understanding of the principles and implications of Islamic law for financial systems.
  • To provide students with an advanced understanding of the practice of Islamic banking and finance and development of Islamic financial products.
  • To critically examine the systems of governance and regulation applied to Islamic banking and financial intermediation.
  • To critically evaluate the controversies and challenges facing of Islamic banking and finance.

Content

  • Background and History of Islamic Banking—Why Islamic finance? Brief history, current status, and prospects. Islamic banking models in theory and practice.
  • Islamic contracts and Islamic finance—Traditional nominate contracts. Use of traditional nominate contracts for contemporary financial transactions. Approaches to product development in Islamic finance. Debate on Shari’ah compliant vs. Shari’ah based products.
  • Islamic Banking Products—Types of deposits (current, savings, and investment accounts). Financing products (real estate, durables, trade, working capital, and overdrafts). Off-balance sheet items (letters of credit and letters of guarantee).
  • Risks in Islamic financial instruments—nature of risk in Islamic financial instruments (murabahah, salam, istisna, ijarah, musharakah, mudarabah).
  • Islamic financial markets and nonbank financial institutions— Applying Islamic law to stock market dealings. The emergence of Islamic mutual funds. Islamic insurance (takaful).
  • Islamic securities— Shari’ah principles of issuing Islamic securities (sukuk). Types and features of sukuk. Case studies of current sukuk issues.
  • Regulatory and Governance Issues-- Regulatory framework (capital adequacy, risk management, etc) for Islamic banks. Application of Islamic contracts in non-Islamic legal jurisdictions. Shari’ah compliance and governance in Islamic banks.
  • Challenges Facing Islamic Finance—Sound regulatory and legal environment. Standardization of Shari’ah rules for Islamic finance. Shari’ah based product development. Lack of personnel having knowledge and skills of finance and Islamic law.

Learning Outcomes

Subject-specific Knowledge:
  • An advanced knowledge of the principles of Islamic finance and an in-depth knowledge of current practice.
  • An advanced understanding of the application of Islamic law in financial transactions.
  • Advanced knowledge of the structures and risks of Islamic financial products.
  • An advanced understanding of regulatory and legal environment under which Islamic banking and finance operates.
Subject-specific Skills:
  • An advanced ability to analyse the operations and practices of Islamic banking and finance.
  • The ability to evaluate the structures of financial products used by the Islamic financial industry
  • The ability to understand the legal and regulatory issues related to Islamic banking and finance.
  • The ability to critically review the experiences of Islamic banking and the challenges that may constrain its growth.
  • Independent thought in analysing and critiquing existing practices of Islamic banking and finance.
Key Skills:
  • Independent learning within a defined framework of study at an advanced level.
  • The ability to work to a deadline and complete written work within word limits.
  • The ability to seek out and use relevant data sources, including electronic and bibliographic sources.

Modes of Teaching, Learning and Assessment and how these contribute to the learning outcomes of the module

  • The modes of teaching are lectures which provide students with an opportunity to learn new concepts, principals, and philosophies and seminars, which allow the students to discuss freely the assigned topics. Guidelines will be given by the tutor. At MA level, seminars are appropriate for the students because they are from different academic backgrounds. Seminars also allow a better exchange of views and ideas.
  • Assessment is through formative presentation and discussion, as well as a 2 hour exam in May-June period which will test students’ depth of understanding and their analytical skills.

Teaching Methods and Contact Hours

Activity Number Frequency Duration Total/Hours
Lectures 9 Weekly 2 hours 18
Seminars 4 Fortnightly 1 hour 4
Preparation and Reading 128
Total 150

Summative Assessment

Component: Examination Component Weighting: 100%
Element Length / duration Element Weighting Resit Opportunity
Exam 2 hours 100% Same

Formative Assessment:

Individual presentation and discussion. Presentation outline (500 words). Students will receive individual written feedback.


Attendance at all activities marked with this symbol will be monitored. Students who fail to attend these activities, or to complete the summative or formative assessment specified above, will be subject to the procedures defined in the University's General Regulation V, and may be required to leave the University


    If you have a question about Durham's modular degree programmes, please visit our User Guide. If you have a question about modular programmes that is not covered by the User Guide, or a query about the Postgraduate Module Handbook, please contact us using the Comments and Questions form below.