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Islamic Banking and Finance (ECO-301)
What the Course is about
Islamic Banking and Finance ( ECO 301) focuses on economic
principles underlying the
working of national and international financial institutions
especially banks, under
guidance provided by Quran and Sunnah.
Objectives
It aims to cover the basic theory and operation of three
economic systems i.e capitalism,
socialism and Islamic economic system. The stress is on
prohibition of Riba in light of
Quranic verses, Islamic modes of financing, and application of
Islamic principles onproject financing, working capital management,
import financing and export financing.
What is expected of you?
Upon completion of the course students should be able to:
Understand the difference between capitalism, socialism and
Islamic economicsystem.
Understand some important financial instruments and the economic
principles in
light of Islamic injunctions
Understand the types and prohibition of riba in Islam
Understand Islamic modes of financing like musharaka, modarabah,
murabaha etc
Apply these Islamic modes on project financing, working capital
and InternationalTrade
Understand the concepts of limited liability, investment funds
and securitization inIslam.
Text Book:
Meezan Banks guide to Islamic Banking
By Mohammad Imran Ashraf Usmani
DARUL ISHAAT Karachi- Pakistan
Recommended Texts
1. IIIEs Blue print on Islamic Financial System, IIU
Islamabad
Week Wise Schedule
1st Week
Comparison of economic systems
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2nd Week
Factors of Production in capitalism, socialism and Islamic
Economic SystemObjective of distribution of wealth in Islam
3
rd
Week Riba in the light of Quranic Verses
Riba in the light of Hadith
Riba al Nasiyah
Riba al Fadl
4th Week
Commercial interest and Usury
Simple and Compound Interest
5th Week
Traditional Banking Practices
6th Week
Bank Lending
Charge & its Types
7th Week Shirkah and Its types
Musharakah
Diminishing Musharakah
8th Week
MID TERM Murabaha contract
Salam contract
9th Week
Istisna
Istijrar
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