Islamic Banking - Functions and Governance

This DIXONTECH course provides an in depth understanding of Islamic banking principles, functions, and governance frameworks based on Shariah compliant financial practices. Participants will explore the fundamental concepts of Islamic finance, including profit and loss sharing, ethical investment, and Shariah governance structures. The course emphasizes practical applications, product structures, and regulatory frameworks essential for professionals in Islamic banking and finance.

TRAINING TOPICS

• Fundamentals of Islamic banking and finance principles
• Shariah compliance and governance structure
• Islamic financial instruments and products
• Risk management in Islamic banking operations
• Regulatory and ethical frameworks in Islamic finance

BY THE END OF THIS TRAINING COURSE, DELEGATES WILL BE ABLE TO

•   Understand the foundations of Islamic banking and Shariah principles
•   Differentiate between Islamic and conventional banking systems
•   Apply Islamic financial contracts in business operations
•   Ensure Shariah compliance in banking activities
•   Evaluate governance and risk management mechanisms
•   Interpret the roles of Shariah boards and regulatory bodies
•   Support ethical and sustainable Islamic financial practices

TRAINING IS TAILORED TO

•   Islamic banking professionals and executives
•   Compliance and Shariah audit officers
•   Financial analysts and product developers
•   Regulators and central bank officers
•   Investment and risk management professionals
•   Accountants and finance managers in Islamic institutions

TRAINING METHODOLOGY

This course employs interactive lectures, real world case studies, and group workshops to connect theory with practice. Participants will examine real Islamic financial products, analyze Shariah governance reports, and engage in simulations that demonstrate how Islamic banking aligns financial operations with ethical principles and social responsibility.

DAY 1

FOUNDATIONS OF ISLAMIC BANKING AND FINANCE

•   Origins and evolution of Islamic finance
•   Objectives and philosophy of Shariah based finance
•   Riba (interest), Gharar (uncertainty), and Maysir (speculation) concepts
•   Key differences between Islamic and conventional banking
•   Core principles: risk sharing and ethical investment
•   Overview of Islamic financial institutions and structures
•   Case study: evolution of global Islamic finance markets

DAY 2

ISLAMIC FINANCIAL INSTRUMENTS AND CONTRACTS

•   Types of Islamic contracts: Mudarabah, Musharakah, Murabaha, and Ijarah
•   Istisna, Salam, and diminishing Musharakah principles
•   Application of Islamic contracts in banking products
•   Asset based vs. debt based financial structures
•   Liquidity management in Islamic banking systems
•   Case analysis: structuring an Islamic financing deal
•   Workshop: practical examples of Islamic contracts

DAY 3

SHARIAH GOVERNANCE AND COMPLIANCE FRAMEWORKS

•   Shariah governance structure and its global models
•   Roles and responsibilities of Shariah supervisory boards
•   Internal Shariah control and audit mechanisms
•   Shariah compliance process and reporting standards
•   Governance principles from AAOIFI and IFSB
•   Integrating Shariah governance with corporate governance
•   Case study: Shariah noncompliance and corrective measures

DAY 4

RISK MANAGEMENT IN ISLAMIC BANKING OPERATIONS

•   Types of risks specific to Islamic financial institutions
•   Credit, market, and operational risks in Islamic finance
•   Managing displaced commercial risk (DCR)
•   Risk sharing mechanisms and capital adequacy
•   Role of Basel III and IFSB standards in Islamic risk frameworks
•   Stress testing and performance monitoring in Islamic banks
•   Practical simulation: managing risks under Islamic principles

DAY 5

REGULATION, ETHICS, AND THE FUTURE OF ISLAMIC BANKING

•   Regulatory and supervisory frameworks in Islamic finance
•   Role of central banks and Shariah councils
•   Ethical banking and corporate social responsibility in Islam
•   Islamic microfinance and financial inclusion initiatives
•   Fintech innovation and digital transformation in Islamic banking
•   Sustainability and ESG integration in Islamic finance
•   Workshop: building a Shariah compliant governance model