1. NAME OF COURSE  / MODULE PRINCIPLES AND PRACTICES OF ISLAMIC BANKING
2. COURSE CODE MBB4013
3. NAME(S) OF ACADEMIC STAFF  
4. RATIONALE FOR THE INCLUSION OF THE COURSE/MODULE IN THE PROGRAMME This course introduces the students with the fundamentals principles and concepts of Islamic Banking. Students are being exposed Islamic banking contracts and current application in Malaysia’s bank.
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 enhance students’ knowledge in theories and principles of Islamic Banking and finance.

2. To highlight students on the main contracts applicable in Islamic products.

3. To equip students with ample knowledge on current practices of Islamic banking in Malaysia.

4. To expose students with the importance of Islamic banking issues.

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

1. Explain the theories and principles of Islamic banking in Malaysia. (LO1- C2; LO6-EM2)

2. Classify Islamic Banking contracts. (LO3- CTPS3)

3. Explain the current practices of Islamic banking in Malaysia (LO1-C2; LO4-CS3)

4. Discuss related issues in Islamic banking (LO4-CS3)

11. TRANSFERABLE SKILLS Student should be able to have optimum understanding on Islamic banking through a process of lectures, tutorial and group discussion.
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 This course introduces the students with the fundamentals, principles and concepts of financial management in a business entity.  Students are being exposed to the sources and usage of information in making decision.  Some of the aspects covered in the course are time value of money, risk and return, financial planning, working capital management, strategic investment decision making and assets (securities) valuation.
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
Islamic Banking: An Overview 2 1 1.5 3.5
Deposit Facilities 2 1 1.5 3.5
Financing Facilities – Consumer: Home Finance & Personal Finance 2 2 3 7
Financing Facilities – Consumer: Vehicle Financing & Islamic Credit Card 2 2 3 7
Financing Facilities – Commercial 4 4 6 14
Financing Facilities – Trade 2 2 3 7
Capital and Money Market Products 2 2 3 7
Risk Management for Islamic Banking 4 4 6 14
Product development of Islamic banking 4 4 6 14
Regulatory Framework and Institution for Islamic Banking 2 2 3 7
Marketing Issues of Islamic Banking 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 reference:

1. Muhammad Ridhwan Ab. Aziz (2013), Islamic Banking and Finance in Malaysia: System, Issues and Challenges. Bandar Baru Nilai: USIM Publisher.

Additional references:

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

2. Muhammad Ridhwan Ab. Aziz (2014), The Principles and Practices of Islamic Banking and Takaful. Bandar Baru Nilai: USIM Publisher.

3. Saiful Azhar Rosly (2005), Critical Issues on Islamic Banking and Financial Markets, Dinamas Publishing, Kuala Lumpur

4. Sudin Haron & Norsofiza Wan Azmi (2009), Islamic Finance and Banking System: Philosophies, Principles & Practices. McGraw Hill.

 

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
 TOPIC 1: Islamic Banking: An Overview

  1. Historical Track at a glance
  2. Ruling Principles.
 

3

 

  1. Describe what is Islamic banking all about.
  2. Explain the principles of Islamic Banking.

LO1

LO2

  • Lecture
  • Tutorial activity – exercises
  • Feedback on library search
TOPIC 2: Product: 1. Deposit Facilities

  1. Wadiah Yad Damanah
  2. Mudharabah
  3. Qard Hasan
  4. Deposit Insurance
 

3

  1. Classify specific contracts applicable in Deposit facilities.
  2. Relate the combination of contracts with financing product.

LO2

  • Lecture
  • Library search
  • Tutorial activity – exercises
  • Feedback on tutorial activity
TOPIC 3: Product 2: Financing Facilities – Consumer

  1. Home Financing
  2. Personal Financing
 

4

  1. Explain the home financing contract.
  2. Explain the personal financing.

LO2

LO3

LO2

CTPS3

  • Lecture
  • Tutorial activity – exercises
  • Feedback on tutorial activity
TOPIC 4: Product: 3: Financing Facilities – Consumer

  1. Vehicle Financing
  2. Islamic Credit Card
 

4

  1. Explain financing facilities.
  2. Explain Islamic credit card and the related contract applicable in the product.
LO1

LO2

LO3

CTPS3
  • Lecture
  • Tutorial activity – exercises
  • Feedback on tutorial activity
TOPIC 5: Product: 4. Financing Facilities – Commercial

  1. International Trade
  2. Islamic Contract
  3. Islamic trade finance product

8

  1. Explain the international trade.
  2. Determine Islamic contract applicable for this product.

LO1

LO2

LO3

CTPS3

  • Lecture
  • Tutorial activity – exercises
  • Feedback on tutorial activity
TOPIC 7: Product: 6. Capital and Money Market Products

  1. Islamic Bond (Sukuk), Islamic Equity
  2. Instruments in Money Markets
 

4

  1. Identify different types of bonds.
  2. Estimate value of bond.

LO1

LO2

LO3

CTPS3

  • Lecture
  • Tutorial activity – exercises
  • Feedback on tutorial activity
TOPIC 8: Risk Management for Islamic Banking

  1. Credit Risk
  2. Equity Investment Risk
  3. Market Risk
  4. Liquidity Risk
  5. Rate of Return Risk
4
  1. Identify various risks existed in Islamic Banking system.
  2. Solve the risk with appropriate solution as proposed by the Islamic banking expert.

LO1

LO2

LO3

CTPS3

  • Lecture
  • Tutorial activity – exercises
  • Feedback on article searching