Islamic banking and takaful: study guide two
Learning outcomes
Chapter 1: overview of the development of Islamic financial systems and institutions:
- identify significant phases in the development of Islamic finance
- describe essential components and features of the Islamic financial system
- explain important factors influencing the development of the Islamic financial system
- explain the nature of Islamic financing operations.
Chapter 2: Islamic financial system: Islamic capital market, takaful and settlement system:
- explain the role of the Islamic capital market
- identify the products offered in the Islamic capital market
- explain the nature and importance of takaful (Islamic insurance)
- identify and distinguish between the various takaful product models
- outline the procedures and explain the importance of the Islamic banking settlement system.
Chapter 3: financial regulation and market standards:
- highlight pertinent developments in the industry that influence financial regulation and governance
- differentiate between the approaches taken by the relevant national authorities to develop the Islamic Finance Regulatory Framework
- understand the role of a Shari'ah board
- differentiate between the function of Shari'ah supervisory boards and Shariah advisory boards
- describe the role and function of the international organisations and international Islamic finance agencies in the development of Islamic finance standards and regulatory frameworks.
Chapter 4: deposits and investment accounts:
- distinguish between the various types of deposits of Islamic financial institutions
- explain the nature and types of investment accounts
- distinguish between restricted and unrestricted investment accounts
- identify issues on depositor and investor protection
- state the implications of restricted investment accounts as off-balance sheet funding.
Chapter 5: Islamic banking products and services:
- explain the financial intermediation process of Islamic financial institutions
- distinguish equity based forms of financing
- distinguish sales based forms of financing/debt financing
- describe lease based forms of financing
- describe various forms of contracts adopted for banking services.
Chapter 6: trade finance and treasury products:
- explain the need for Islamic trade finance products
- explain the underlying contracts used for trade finance products
- describe Islamic import financing products and facilities
- describe Islamic credit guarantee schemes based on Kafalah
- describe Islamic inter-bank money market instruments
- explain the underlying contracts adopted for money market instruments
- specify inter-bank money market instruments.
Chapter 7: takaful - an overview:
- explain the nature and relationship of policy holders with takaful operators
- categorise and explain types of family and general takaful products
- Identify salient features of regulatory and governance requirements for the takaful industry.
Chapter 8: takaful products and services:
- describe the types and features of takaful products
- explain the role of takaful operator and relevant regulatory requirements
- distinguish between takaful and conventional insurance
- describe the underlying contracts for takaful products
Chapter 9: takaful underwriting, deficit, surpluses and retakaful:
- identify the issues regarding the scenario of deficit of takaful fund
- explain the issues relating to an underwriting surplus
- describe the issues relating to retakaful and re-insurer.
Chapter 10: the financial and operational risks of Islamic financial institutions:
- explain the nature of risk for Islamic financial institutions
- identify and describe types of Islamic financial institution risk exposures
- describe the market risk exposures of Islamic financial institutions
- describe the credit risk exposures of Islamic financial institutions
- describe equity investment risk, rate of return risk and displaced commercial exposures of Islamic financial institutions
- describe operational risk exposures with specific reference to Shari'ah non-compliance
- identify pertinent issues to be addressed in mitigating different types of risk.