• Length:
    4 Weeks
  • Effort:
    3–4 hours per week
  • Price:

    FREE
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  • Institution
  • Subject:
  • Level:
    Introductory
  • Language:
    English
  • Video Transcript:
    English

Prerequisites

None

About this course

Skip About this course

This Islamic Finance and Capital Markets course gives an overview of the Tradability of Sukuk, also known as Islamic bonds, and the development of Islamic Money Markets.

You will learn about the different instruments and components of an Islamic Money Market. We will also discuss the role of money markets and the need for Shari’ah-compliant sources of funds.

Additional Topics Include:

  • Monetary Operations in Islamic Money Markets
  • Credit Facilities Offered by Central Banks
  • Monetary Operations and Public Debt Management
  • Islamic Money and Foreign Exchange Markets

At the end of the course, you will learn about Islamic Money Markets through various Case Studies from Malaysia, Sudan, Pakistan and more.

No previous knowledge is needed.

Why Islamic finance is important for the global financial industry

Islamic finance has grown rapidly, with the trend expecting to continue. Although the concept has been around for much longer, Islamic finance only attained a formal status in Muslim-majority countries in the 1970s. Today, it has become a global phenomenon, eliciting increasing interest around the world, including from non-Muslim countries like the United Kingdom, Luxemburg, Kenya, South Africa, and Hong Kong. Islamic finance has grown into a huge industry with total worldwide assets estimated at about US$2 trillion.

Islamic finance has the potential to contribute to higher and more inclusive economic growth by increasing access of banking services to underserved populations. In addition, it has the potential to promote financial stability due to its risk-sharing feature and its financing being asset-backed and thus fully collateralized. Moreover, Islamic banks offer profit-sharing and loss-bearing accounts that can help mitigate losses and contagion in the event of banking sector distress. These are all indications that Islamic finance is converging to the global finance industry and hence all international finance professionals should be aware of Islamic finance.

What you'll learn

Skip What you'll learn
  • Tradability, Structures and Potential of Sukuk
  • Development of Islamic Money Markets
  • Monetary Operations in Islamic Money Markets
  • Case Studies in Islamic Money Markets

Week 1 – Tradability, Structures and Potential of Sukuk  

  • Chapter Introduction      
  • Tradability of Sukuk       
  • Pre-fixed Rate of Return on Sukuk     
  • Restrictions and Flexibility in Returns  
  • Other Issues in Sukuk Tradability      
  • Potential for Sukuk        
  • Examples of Sukuk Issues in the Islamic World     
  • Chapter Summary

          
Week 2 – Development of Islamic Money Markets 

  • Chapter Introduction      
  • Limited Scope of Islamic Money Markets      
  • The Need for Shari’ah-Compliant Sources of Funds 
  • The Role of an Islamic Money Market 
  • The Negative Effects of Undeveloped Money Markets       
  • Legal Amendments to Develop Islamic Money Markets    
  • Shari’ah Issues in the Development of Islamic Money Markets  
  • Tax Issues in Developing Islamic Money Markets   
  • Instruments and Components of an Islamic Money Market       
  • Trends in Liquidity Management by IFIs       
  • Interbank Instruments Used by IFIs
  • Chapter Summary 

Week 3 – Monetary Operations in Islamic Money Markets

  • Chapter Introduction
  • Credit Facilities Offered by Central Banks     
  • Central Bank Deposit and Reserves
  • Examples of Facilities for IFIs   
  • Market-based Financing Instruments  
  • Tradability of Shari’ah-Compliant Instruments       
  • Supervising Liquidity Management     
  • Monetary Operations and Public Debt Management
  • Factors in the Growth of Islamic Money Markets     
  • Policy Issues in Islamic Money Markets        
  • Developing Shari’ah-compliant Money Market Instruments
  • Monetary Operations and Public Debt Financing     
  • Islamic Money and Foreign Exchange Markets
  • Chapter Summary 

Week 4 – Case Studies in Islamic Money Markets  

  • Chapter Introduction      
  • Overview of the Malaysian IIMM
  • Market-Based Instruments for Money Operations   
  • Processes of IIMM Instruments 
  • Shari’ah-Compliant Alternatives to Forex Swaps     
  • Overview of Interbank Money Markets in Sudan     
  • Sudanese Markets and Monetary Operations
  • Sudanese Payment Systems, Secondary and Forex Markets
  • Overview of Money Markets in Bahrain
  • Central Bank Facilities in Bahrain       
  • Market-Based Instruments in Bahrain 
  • Bahraini Payment Systems and Secondary and Forex Markets
  • Overview of Money Markets in Pakistan        
  • Pool-Based Placement in the Pakistani Money Market      
  • Parameters for Pool-Based Placement in Pakistan  
  • Other Modes of Fund Placement in Pakistan 
  • Standing Facilities, Payment Systems and Forex Markets 
  • Chapter Summary  

Meet your instructors

Ahmed Iskanderani
Former Director, Islamic Finance Capacity Development
The Islamic Research and Training Institute
Yahya Aleem ur Rehman
Lead Islamic Finance Specialist
The Islamic Research and Training Institute
Khalifa M. Ali Hassanain
Senior Economist
The Islamic Research and Training Institute
Abdullahi Mohamed
Shari’ah (Islamic Law) expert

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