FS7051 - Principles of Islamic Finance and Economics (2017/18)
|Module specification||Module approved to run in 2017/18|
|Module title||Principles of Islamic Finance and Economics|
|Module level||Masters (07)|
|Credit rating for module||20|
|School||Guildhall School of Business and Law|
|Total study hours||200|
|Running in 2017/18||
This module provides an insight into the development of Islamic Finance, one of the fastest growing sectors in the global financial system. It will explore the key concepts, financial products and practical operations of the sector. It will also look at the underlying principles of sharia-compliant finance and highlight key differences to conventional finance practices.
Delivery will be a combination of lectures, seminars and small group discussions with learning supported by web based learning resources, self-directed reading and industry expert external speakers.
Students will be issued with a module handbook, and guidance on reading, most of which will be available through the Learning Centre, others through Weblearn.
- Provide students with an understanding of the main principles of Islamic Finance and reasons behind its origins
- Explain the nature and scope of Islamic Finance and its relationship, and key differences when compared with conventional Finance
- Understand the financial products and operating principles that are key to sharia-compliant finance
- Develop understanding of this fast-growing facet of global finance, boosting employability opportunities across the industry
- Fundamental concepts of Islamic finance
- Comparison of conventional and Islamic financing
- Sharia and Fiqh Principles
- Key concepts in Islamic economics
- Islamic business ethics
Learning and teaching
The learning and teaching strategy will encompass a combination of lectures, seminars and online work. As a postgraduate module there will be an expectation of a degree of self-directed learning.
Material delivery will include: tutor-led lectures, student-led class discussions and seminar sessions alongside case studies and individual exercises. Students will also be encouraged to draw upon their own experience of organisations and employment to support the development of relevant knowledge, skills and understanding. Speakers working in the field will be invited to give students an insight into real world practices.
Sessions will be supported by web based resources on Weblearn and directed learning activities. Students will be issued with a module handbook and guidance on reading, most of which will be available through the Learning Centre or through Weblearn.
On completion of the module students should be able to:
- Critically evaluate the merits and weaknesses of Islamic Finance, as well as the key differences with conventional Finance.
- Understand economic principles underlying Islamic economics.
- Explore the range of sharia-compliant financial instruments available for investors and corporations.
- Appreciate the basic principles of Islamic business ethics, the concept of social responsibility, and the concept of money in Islam.
Two pieces of assessment:
One hour mid-term in-class test
- Will test students understanding of the key economic principles that underpin Islamic finance, and ability to evaluate the similarities and differences with conventional finance practices.
4500 word individual final report
- A comprehensive report into the growth of Islamic Finance as a credible alternative to conventional Finance. Will evaluate the underlying economic principles and their application in Islamic Banking & Finance through sharia-compliant products and ethical practises. The report will also aim to ground students understanding of overall course content through application to real-world, commercial examples.
On Line Resources:
- Islamic Finance Training - www.1stethical.com
- Institute of Islamic Finance - www.ethicainstitute.com
- Guide to Islamic Finance in the UK - www.gov.uk/government/publications/guide-to-islamic-finance-in-the-uk
- IslamicFinance.com - www.islamicfinance.com/category/news/islamic-finance-publications/
- Global Islamic Finance Magazine - http://www.globalislamicfinancemagazine.com/
Abdullah, D.V. and Chee, K. (2010). Islamic Finance: Why it Makes Sense. Singapore: Marshall Cavendish International (Asia).
DiVanna, J. A., (2006). Understanding Islamic Banking: The Value Proposition that Transcends Cultures. Cambridge: Leonardo and Francis Press.
El-Gamal, M. A. (2011). Islamic Finance: Law, Economics, and Practice. Cambridge: Cambridge University Press.
Harris, I. (2014). Heaven's Bankers: Inside the Hidden World of Islamic Finance. London: Constable
Hassan, M. Kabir et al (2013). Introduction to Islamic Banking & Finance: Principles and Practice. Harlow UK: Pearson Education
ISRA (2016). Islamic Financial System: Principles & Operations/International. Kuala Lumpur, Malaysia: Pearson Custom Publishing.
Muhammad, A. (2007). Understanding Islamic Finance. Chichester: John Wiley & Sons Ltd.