One Day Workshop on Islamic Banking 26/10/2013

One Day Workshop

On

Islamic Banking

Dated: October 26, 2013

Venue:

Mehboob ul Haq Executive Development Centre

FAST School of Management National University of Computer & Emerging Sciences

Islamabad

Resource Person

Muhammad Hanif Fellow CMA

Assistant Professor ACC/FIN

For Registration and Inquiry, please contact

Muhammad Ali Accounts Officer

Ph: +92 51 111 128 128 Ex 179

Who should attend?

v  Existing professionals of Islamic financial industry

v  Existing professionals of conventional banking intending to switch careers

v  Prospective bankers—Students interested in financial career

v  Accountants---- existing and prospective

v  Individuals looking for career in legal and accounting firms

Learning Outcomes

After going through this rigorous course of one day participants are expected to understand and apply concepts of Islamic finance in following areas:

v  An Understanding of need and Justification of different banking streams in the light of socioeconomic ideologies.

v  An overview of Current state as well as future outlook of the Islamic finance industry.

v  Application of Islamic finance in mobilization of funds through deposits.

v  Practice of Islamic banking in construction of investment and financing portfolios of Islamic banking including Murabaha, Ijarah, Diminishing Musharaka, partnership and marketable securities (Skuk & Equity securities).

v  An understanding of principles and rational of Islamic Mortgages.

v  An appreciation of Islamic capital market including SKUK and Shari’a Compliant securities.

Background

Islamic banking started in last quarter of 20^th century and got into momentum in the first decade of the 21^st century. Global volume of assets under Islamic finance has reached to US $ 1,289 billion by the end of Dec 2011. Islamic banking has shown tremendous growth during global recession of the 2^nd half of previous decade (2000-10) in spite of the downturn of world’s leading economies. Islamic finance showed resilience & growth during recession. Islamic finance is being practiced in more than 50 countries and in above 300 institutions globally. Islamic banking has shown marvelous growth in Pakistan during first decade of this century. Islamic banking has grown at the rate above 50% [average annual] in local economy during last ten years which is also a sign of promising career opportunities.  Islamic banking is different from conventional banking and cannot be practiced by Human Resource trained in conventional financial education. The chief differences of both includes Riba (interest & usury), asset based financing (selling & rental modes) and risk and reward sharing (Musharaka & Mudaraba). To practice Islamic banking, relevant knowledge of Islamic finance is required. In order to cater this need of individuals working in the financial sector and prospective career builders in this industry a one day workshop is being organized in the capital of Pakistan, Islamabad.

 

Course Contents

This conference will start from theoretical background and conclude at the operational level. Outline of Topics to be covered are as follow:-

a.       Why Islamic banking?

b.      Insight about prohibition of interest in world renowned revealed religions (Judaism, Christianity & Islam)

c.       An overview of current state of Islamic financial industry

d.      Deposits management by Islamic banks (current account and profit and loss sharing account)

e.       Investment portfolios of Islamic financial institutions (sale, lease, Musharaka, Mortgages, Mudaraba and investment in marketable securities)

f.       Liquidity management by Islamic banks (Skuk & marketable equity securities)

 

Detailed Program

9:00     Registration and introduction

9:20     Introduction to Islamic Banking

·         Why Islamic banking?

·         How Islamic banking was developed?

·         What is present status of Islamic banking?

·         What are revealed injunctions about interest?

·         What are criticisms on Islamic banking?

·         What are salient features of Islamic banking?

·         What are differences in conventional and Islamic banking?

·         What are financing modes under Islamic financial system?

10: 30  Deposits Management

·         What are underlying principles in deposit management of IFIs?

·         What is daily product system in banking business?

·         What are principles regulating deposits servicing in IFIs?

·         What is financial impact of deposits and how it is accounted for?

11:00   Tea Break and Socialization

11:20   Murabaha Financing

·         What is Murabaha financing?

·         What are Shari’a rulings about operations of Murabaha financing?

·         What are differences and similarities in conventional loans and Murabaha financing?

·         What are steps in a transaction of Murabaha financing?

·         What is financial impact of Murabaha financing and how it is accounted for?

12:00   Ijarah (Leasing) Financing

·         What is Ijarah financing?

·         What are Shari’a rulings about operations of Ijarah financing?

·         What are steps in a transaction of Ijarah financing?

·         What are similarities & differences in conventional lease and Ijarah financing?

·         What is financial impact of Ijarah financing and how it is accounted for?

13:00   Lunch and Prayer Break

14:00   Musharaka and Diminishing Musharaka

·         What is Musharaka financing?

·         What are Shari’a rulings about operations of Musharaka financing?

·         What is financial impact of Musharaka financing and how it is accounted for?

·         Why Musharaka financing is not as popular as other modes of financing?

·         What is diminishing Musharaka financing?

·         What is financial impact of diminishing Musharaka financing and how it is accounted for?

·         How Islamic house financing is operated?

·         What are issues in practice of Islamic house financing?

·         What are similarities and differences in conventional and Islamic house financing?

15:45   Tea Break and Socialization

16:00   Capital Market (Equities and Skuk)

·         What is meant by liquidity management by an IFI?

·         What is meant by Shari’a compliant of a security?

·         What are valuation methods of Shari’a compliant securities?

·         What are Shari’a rulings about trading of securities?

·         What are Skuk and how Skuk are different from conventional bonds?

·         What are Shari’a rulings about operations of Skuk?

·         How Skuk process is completed?

17:00   Certificate Distribution

Resource Person

Mr. Muhammad Hanif Fellow CMA is Assistant Professor at National University of Computer & Emerging Sciences, Islamabad. He is a graduate of University of The Punjab (B.COM 1993, M.COM 1997, Gold Medalist). He completed MS Finance 2009, (Distinction) from International Islamic university, Islamabad; PhD Finance thesis is submitted for Evaluation (expected defense Fall 2013).  He became Associate Member of Institute of Cost & Management Accountants of Pakistan in 2001 and Fellow Member in 2007.  He achieved presidential award for securing over all first position in AJK PSC in 1998. He has 14 years of professional/managerial and teaching experience at Sialkot College of Commerce and Business Administration, Riphah International University, Bahria University, ICMAP and FAST-National University. He has vast experience in financial and tax consultancy. His research areas include Valuation of assets, Earnings Management and Islamic financing. His research (15 articles) has been published in national and international journals of repute/ presented in international conferences and is accessible from http://ssrn.com/author=454519. He is teaching subject of Islamic banking regularly to business graduates at FAST School of Management for last four years. He has authored two books in the area of Islamic finance published from Germany (2009) and United States of America (2011), available at Amazon.com. He has travelled globally as part of research activities and paper presentations including United Arab Emirates, United Kingdom and United States.