LAW 301: Islamic Finance and Banking Law offers an in-depth exploration of the principles, operations, and legal foundations that underpin Islamic finance and banking. This course introduces the key concepts of risk-sharing, profit and loss sharing, and the prohibition of interest (riba), which distinguish Islamic financial systems from their conventional counterparts. Through an analysis of various Islamic financial instruments such as Mudarabah (profit-sharing), Murabahah (cost-plus financing), and Sukuk (Islamic bonds), students will understand how Islamic finance combines adherence to religious principles with practical financial solutions.
The course examines the regulatory landscape governing Islamic financial institutions, highlighting the role of Shariah boards in ensuring compliance with Islamic law. It also addresses the challenges of integrating Islamic finance into global financial markets, including issues related to standardization, regulatory frameworks, and inter-bank liquidity markets.
Through case studies, students will analyze the legal and ethical dimensions of Islamic finance practices and their impact on economic development, social justice, and global financial stability. The course encourages critical thinking about the adaptability of Islamic finance principles in addressing contemporary economic challenges and fostering inclusive growth.
Overall Objectives for this Course:
By the end of this course, students should be able to:
- Articulate the foundational Shariah principles governing Islamic finance and banking.
- Identify and analyze the main financial instruments used in Islamic banking and finance.
- Understand the role and function of Shariah boards within Islamic financial institutions.
- Critically assess the legal frameworks and regulatory challenges facing Islamic finance globally.
- Explore the ethical implications of Islamic finance on economic development and social justice.
- Examine case studies on the application of Islamic finance principles in various contexts.
- Debate the compatibility and integration of Islamic finance within the global financial system.
- Reflect on the future of Islamic finance and potential areas for reform and innovation.
Curriculum
- 15 Sections
- 1 Lesson
- 14 Weeks
- Reading ProjectFor a comprehensive coverage of Islamic Finance and Banking Law, I recommend “Introduction to Islamic Banking & Finance: Principles and Practice” by Kabir Hassan and Mervyn K. Lewis. This book offers an in-depth understanding of the principles behind Islamic finance, including risk-sharing, the prohibition of interest (Riba), and the emphasis on ethical and sustainable financial practices. It provides both theoretical foundations and practical insights into the functioning of Islamic financial institutions, making it a valuable resource for students and professionals interested in this field.0
- Week 1: Introduction to Islamic Finance: Principles and Evolution1
- Week 2: Shariah Compliance in Financial Transactions0
- Week 3: Risk-sharing Mechanisms: Mudarabah and Musharakah0
- Week 4: Asset-based Financing: Murabahah, Ijarah, and Istisna0
- Week 5: Sukuk: Principles, Structures, and Market Trends0
- Week 6: The Role of Shariah Boards in Islamic Financial Institutions0
- Week 7: Legal and Regulatory Framework for Islamic Finance0
- Week 8: Islamic Finance in Global Markets: Challenges and Opportunities0
- Week 9: Ethical Considerations and Social Impact of Islamic Finance0
- Week 10: Case Study Analysis: Success Stories and Failures in Islamic Finance0
- Week 11: Islamic Banking vs. Conventional Banking: A Comparative Analysis0
- Week 12: Innovations in Islamic Finance: Fintech and Beyond0
- Week 13: Group Presentations on Contemporary Issues in Islamic Finance0
- Week 14: The Future of Islamic Finance: Trends, Challenges, and Opportunities0
