IC312: Islamic Banking Practices

Module code: IC312

Module provider: ICMA Centre; Henley Business School

Credits: 20

Level: 6

When you'll be taught: Semester 2

Module convenor: Dr Mohd Pisal Zainal, email: m.p.zainal@henley.edu.my

Pre-requisite module(s):

Co-requisite module(s):

Pre-requisite or Co-requisite module(s):

Module(s) excluded:

Placement information: na

Academic year: 2024/5

Available to visiting students: No

Talis reading list: No

Last updated: 19 November 2024

Overview

Module aims and purpose

This module introduces basic concepts, principles, products and services offered by the Islamic banking system. It equips students with a working knowledge of the types of Islamic contract associated with the products and services offered by the Islamic banking system – either retail or corporate. This module familiarizes the students with regulatory and legal frameworks governing the conventional and Islamic banking systems. The dual-banking perspective is the approach of the module. This module provides a link to the universally accepted principles of the United Nations General Assembly’ Sustainable Development Goals (SDGs) and green financing (responsible finance), also the value-based banking system

Module learning outcomes

By the end of the module, it is expected that students will be able to:

• develop and demonstrate appropriate knowledge of the fundamental concepts and principles of Islamic banking/finance;
• critically analyse on the need to engage and be knowledgeable about leading edge practices in Islamic finance/banking;
• demonstrate critical thinking skills and analyse the importance of continuing professional learning and development throughout their career;
• within the field of Islamic banking/finance, graduating students will be able to demonstrate confident, credible communication regardless of the mode of transmission and engage with and be knowledgeable about sound business practice.

Module content

1. Introduction to principles of Islamic finance
2. Types of contracts in Islamic banking system
3. Shari’ah and Regulatory Frameworks: Islamic and conventional banking systems 
4. The structure of Islamic financial system: Roles and functions of an Islamic bank
5. Islamic Banking Operation: Assets and Liabilities
6. Corporate & Trade Financing
7. Financial Services and Channel Management, treasury functions and operations
8. The Islamic Interbank money market
9. Managing Islamic banking institutions & Risk management for Islamic banking system
10. Deposit Insurance System
11. SDGs, green financing and VBI in Islamic banking system

Structure

Teaching and learning methods

Brief description of teaching and learning methods

• Interactive face-to-face lectures 
• Discussions on case studies during seminar sessions to develop students’ ability to work in a group and to develop their analytical thinking and problem-solving skills
• Online interactive sessions (as and when available)
• Students are strongly encouraged to work independently as well as in groups

For students studying at our campus in Malaysia:  The breakdown of study hours may differ to those set out in the Study Hours table (please refer to the Module Handbook for the correct breakdown). In addition, you will be required to complete an additional 40 hours of study, taking the total number of study hours to 240 for this module. This is to comply with the Malaysian Quality Agency (MQA).

Study hours

At least 40 hours of scheduled teaching and learning activities will be delivered in person, with the remaining hours for scheduled and self-scheduled teaching and learning activities delivered either in person or online. You will receive further details about how these hours will be delivered before the start of the module.

Please note the independent study hours above are notional numbers of hours; each student will approach studying in different ways. We would advise you to reflect on your learning and the number of hours you are allocating to these tasks.

Semester 1 The hours in this column may include hours during the Christmas holiday period.

Semester 2 The hours in this column may include hours during the Easter holiday period.

Summer The hours in this column will take place during the summer holidays and may be at the start and/or end of the module.

Assessment

Requirements for a pass

40% weighted average mark of Individual report and group project..

Summative assessment

Penalties for late submission of summative assessment

The Support Centres will apply the following penalties for work submitted late:

Assessments with numerical marks

• where the piece of work is submitted after the original deadline (or any formally agreed extension to the deadline): 10% of the total marks available for that piece of work will be deducted from the mark for each working day (or part thereof) following the deadline up to a total of three working days;
• the mark awarded due to the imposition of the penalty shall not fall below the threshold pass mark, namely 40% in the case of modules at Levels 4-6 (i.e. undergraduate modules for Parts 1-3) and 50% in the case of Level 7 modules offered as part of an Integrated Masters or taught postgraduate degree programme;
• where the piece of work is awarded a mark below the threshold pass mark prior to any penalty being imposed, and is submitted up to three working days after the original deadline (or any formally agreed extension to the deadline), no penalty shall be imposed;
• where the piece of work is submitted more than three working days after the original deadline (or any formally agreed extension to the deadline): a mark of zero will be recorded.

Assessments marked Pass/Fail

• where the piece of work is submitted within three working days of the deadline (or any formally agreed extension of the deadline): no penalty will be applied;
• where the piece of work is submitted more than three working days after the original deadline (or any formally agreed extension of the deadline): a grade of Fail will be awarded.

The University policy statement on penalties for late submission can be found at: https://www.reading.ac.uk/cqsd/-/media/project/functions/cqsd/documents/qap/penaltiesforlatesubmission.pdf

You are strongly advised to ensure that coursework is submitted by the relevant deadline. You should note that it is advisable to submit work in an unfinished state rather than to fail to submit any work.

Formative assessment

Formative assessment is any task or activity which creates feedback (or feedforward) for you about your learning, but which does not contribute towards your overall module mark.

On-going during lecture and seminar sessions throughout the term.

Reassessment

Additional costs