1. NAME OF COURSE  / MODULE MANAGEMENT OF BANKING AND TAKAFUL INSTITUTIONS
2. COURSE CODE MBA4013
3. NAME(S) OF ACADEMIC STAFF  
4. RATIONALE FOR THE INCLUSION OF THE COURSE/MODULE IN THE PROGRAMME This course serves as one of the core courses related to Muamalat administration. It exposes the students to the management of Islamic banking and Takaful institutions through discussions of the capital, asset, liabilities and incomes structures of the institutions. This course shall equip the students intellectually with the practical knowledge of banking and takaful institutions management.
5. SEMESTER & YEAR OFFERED Semester 6 / Year 3
6. TOTAL STUDENT LEARNING TIME (SLT)

 

 

Face to face:

L T P O
28 26  – 5

L=lecture ; T=Tutorial; P=Practical; O=Others (Exam)

Total Guided and Independent Learning:

120
7. CREDIT VALUE 120/40= 3.00 (3 credit); 2+2
8. PREREQUISITE (IF ANY) NIL
9. OBJECTIVES 1.To explain the functions and roles of the Islamic banking and takaful institutions in the Malaysia financial system.

2.To illustrate and analyze the organizational structure, opportunity, limitations and challenges of the Islamic banking and takaful institutions.

3.To equip the students with the practical knowledge on the management of banking and takaful institutions through analysis of the relevant financial statements.

10. LEARNING OUTCOMES At the end of the course, learners will be able to:

1.Analyse and interpret the performance of the Islamic banking and takaful institutions. (LO3-CTPS3, LO5-TS3)

2.Analyse the capital requirement, assets and liabilities compositions and the level of risk exposure of the banking and takaful institutions for identifying business opportunities. (LO3-CTPS3, LO8-ES1)

3.Practice the virtuous values such as trustworthy, responsibility and committed in managing the banking and takaful institutions. (LO6- EM, LO5-TS3)

11. TRANSFERABLE SKILLS Students should be able to analyse the performance of banking and takaful institutions and plan the right approach for planning, managing and monitoring the institutions effectively and efficiently through a process of lectures, tutorial and group and individual assignment.
12. TEACHING-LEARNING AND ASSESSMENT STRATEGY Teaching-learning strategy:

·The course will be taught through a combination of formal lectures, exercise, group work, using authentic materials, informal activities and various textbooks. Collaborative teamwork will be fosters throughout the course. The use of examination and internal reporting assessment will assess the student’s ability to apply theoretical concept in context.

Assessment strategy:

·Formative

·Summative

13. SYNOPSIS Islamic banking and finance system consists of four main elements i.e. operating institutions, supervisory body, financial markets and instruments. Each of these elements is inter-related and inter-dependent between each other. Effective and due diligent management of Islamic financial institutions requires an in-depth knowledge of the managerial functions, roles and aspects of the related institutions. The best-practice standard of management could not only improve the performance of the institutions, but it would assure the realization of the Malaysia’s objective to be the global development centre for Islamic financial system. This course aims to increase the students’ understanding on the functions and roles of the Islamic financial institutions especially on the two main IFIs (Islamic financial institutions) i.e. Islamic banking and takaful institutions in Malaysia. The students will be exposed to the governance, functions, roles and supervision of these institutions. The focus will be also on the organizational structure of these IFIs in term of capital, assets compositions, liabilities compositions and performance measurement. Other issues related to the opportunity and challenges of managing these institutions are also discussed.
14. MODE OF DELIVERY Lectures and tutorial (SCL)
15. ASSESSMENT METHODS AND TYPES
Component %
Continuous Assessment 40
Final examination 60
Total 100
16. CONTENT OUTLINE OF THE COURSE/MODULE AND SLT PER TOPIC
TOPIC Lecture Tutorial Test/Quiz/Exam Assignment Assessment (Library Search) Self-study Total
Introduction: Malaysian Islamic Financial System 2 2 3 7
Rules, Regulation and Standards in Islamic Banking and Takaful Industry 2 2 3 7
Banking Industry and Capital Structures 4 4 6 14
Islamic Banking Assets 2 2 3 7
Islamic Banking Liabilities 2 2 3 7
Profitability and Performance of Islamic Banking Industry/Institutions 2 2 3 7
Takaful Industry and Capital Structures 4 2 6 14
Assets of Takaful Operator 2 2 3 7
Liabilities of Takaful Operator 2 2 3 7
Profitability of Takaful Operator 2 2 3 6
Zakat in Islamic Banking and Takaful Industry 2 2 3 6
Issues in Islamic Banking and Takaful Industry 2 2 3 7
Continuous Test/Quiz/Assessment 2 6 4 12
FINAL 3 9 12
TOTAL 28 26 5 6 13 42 120
17. REFERENCES Main references:

1.Abdul Ghafar Ismail. 2010. Money, Islamic Banks and the Real Economy. Singapore: Cencage Learning.

2.INCEIF. 2012. Takaful Realities & Challenges. Petaling Jaya: Pearson Malaysia Sdn Bhd.

Additional references:

1.Sudin Haron. 2005. Sistem Kewangan dan Perbankan Islam. Kuala Lumpur Business School.

2.Mohd. Ma’sum Billah. 2003. Islamic and Modern Insurance. Petaling Jaya: Ilmiah Publishers.

3.Al-Hiti, Abd al-Razzaq Rahim Jiddi. Al-Masarif al-Islamiyyah bayn al-Nazariyyahwa al-Tatbiq. Amman: Dar Usamah.

4.Shamsudin Ismail. 2003. Pengurusan Bank Perdagangan di Malaysia (Jilid 1 dan 2). Kuala Lumpur: DBP.

 

Mapping of the course/module to the Programme Learning Outcomes

TOPIC

Contact hours (week)

Lesson Learning Outcome

(Students are able to…)

CLO KI Teaching & Learning Activities Assessment Tasks
Introduction: Malaysian Islamic Financial System

History and Development; Islamic Banking System; System and Fund Mobilization Perspectives;

Functions and Roles of Islamic Banking in Malaysia

4 1. Explain the history and development of Islamic financial system in Malaysia

2. Explain the development of Islamic banking industry

3. Restate the function and roles of Islamic banking system in the Malaysian financial system

 

LO3

 

CTPS3

o Lecture

o Tutorial activity

· Feedback on library search
Rules, Regulation and Standards in Islamic Banking and Takaful Industry

IFSA 2013, IFSB, AAOIFI,  and BNM Standards, Shariah Governance

4 1. Explain the legal and supervision framework of the Islamic banking industry LO3 CTPS3 o Lecture

o Tutorial activity

 
Banking Industry and Capital Structures

Islamic Banking Capital; Capital Requirement; Capitalization Method; Capital Adequacy Ratio

8 1. Discuss the roles of banks capital and differentiate between the different methods of capital adequacy evaluation LO3 CTPS3 o Lecture

o Tutorial activity

· Feedback on tutorial activity

· Evaluated

Islamic Banking Assets

Assets Components; Shariah Principles of Assets Acquisition; Assets Ratios

4 1. Explain the assets components of Islamic banks

2. Discuss and differentiate various types of Shariah principles for asset acquisition

3. Interpret the asset ratios.

LO1

LO3

 

CTPS3

 

o Lecture

o Tutorial activity

·  Feedback on tutorial activity

·  na

Islamic Banking Liabilities

Liabilities Components; Liabilities Management Principles

4 1. Explain the liabilities components of Islamic banks

2. Discuss the principles of liabilities management

LO1

LO3

 

CTPS3

 

o Lecture

o Tutorial activity

· Feedback on tutorial activity

· Evaluated

Profitability and Performance of Islamic Banking Industry/Institutions

Sources of Income; Source of Expenses; Profit-and-loss Division

4 1.   Explain the sources of income for Islamic banks

2.   Explain the sources of expenses for Islamic banks

3.   Analyse the performance of Islamic banks

4.   Discuss the strategies of NPF management and its impact on the bank’s profitability

LO1

LO2

LO3

LO6

CTPS3

EM2

o Lecture

o Tutorial activity

·  Feedback on article searching

·  na

Takaful Industry and Capital Structures

Takaful Act 1985; Risk Management Instruments; Shariah-compliant Insurance; Takaful Products Capital of Takaful Operator; Capital Requirement; Capitalization Methods;

6 1.   Explain structure of takaful industry in Malaysia including products, operators and etc.

2.   Discuss the capital structure of Takaful operator

LO1

LO3

LO6

CTPS3

EM2

o Lecture

o Tutorial

·  Feedback on article searching

·  na

Assets of Takaful Operator

Assets component; Assets Management Principles; Assets Ratios

4 1. Explain the assets components of Takaful operators

2. Explain the principles of assets management

3. Interpret the asset ratios

LO1

LO6

EM2 o Lecture

o Tutorial

o Group active reading

·  Evaluated

Liabilities of Takaful Operator

Liabilities component; Liabilities Management Principles; Liabilities Ratios

4 1. Explain the liabilities structure of Takaful operators

2. Explain the principles of liabilities management for Takaful operators

3. Interpret the asset ratios

LO1

LO6

EM2 o Lecture

o Tutorial

o Group active reading

o Preparation of concept map

·  Presentation

Profitability of Takaful Operator

Sources of income; Sources of Expenses;

4 1.   Explain income structure of Takaful operators

2.   Explain the various types of expense for Takaful operators

3.   Analyze the performance of Takaful operators

LO1

LO6

EM2

 

o Lecture

o Tutorial

o Group active reading

o Preparation of concept map

·  Presentation

Zakat in Islamic Banking and Takaful Industry

Jawahir Manual and Application in the Industry

4 1. Explain zakat framework in Islamic banking  and takaful industry

2. Analyze different methodologies for zakat for banking and takaful industry

LO1

LO6

EM2 o Lecture

o Tutorial

Issues in Islamic Banking and Takaful Industry

Competition, Risk Management, Shariah Governance

4 1. Discuss the main issues in Islamic banking and Takaful industry that includes competition, risk managements and Shariah governance

LO1

LO6

EM2 o Lecture

o Tutorial

o Group active reading

o Preparation of concept map

·  Presentation