UNIVERSITI TEKNOLOGI MARA

COURSE INFORMATION

Code
Course

:
ISB547
Islamic Banking & Financial Services

Level
Credit Unit

:
:

Degree
4
Contact Hours

Part: 4

Course Outcomes
At the end of the course, students should be able to :
1. to explain the Islamic retail and corporate banking products offered
by Islamic banks.
2. to evaluate the currents issue pertaining to Islamic retail and
corporate banking products offered by Islamic banks.
3. to identify the types of Shariah concepts used for Islamic retail and
corporate banking products.

Course Description
This subject is the continuation from the Philosophy and Principles of Islamic
Banking. It discusses the organization of modern banking within the Islamic
framework. It covers an in depth study on the Islamic retail and corporate
banking products available in the market

Assessment
Assignments
10%
Presentation
10%
Test 1 & 2
30%
Final Examination 50 %

Main References
Ismail, Abdul Ghafar (2009). Money, Islamic Banks and the Real Economy,
CENGAGE Learning

Other References
1.
2.
3.
4.
5.
6.
7.
8.
9.

Islamic Banking Practice: From The Practitioners Perspective, 1994, Bank Islam Malaysia
Berhad
Mohd Bakir Haji Mansor (1998), Konsep Syariah Dalam Sistem Perbankan Islam, BIMB
Institute of Research and Training Sdn Bhd.
Ismail Mahayudin (1997), International Trade Operations: A Guide, BIMB Institute of
Research and Training Sdn Bhd
Zamir Iqbal & Abbas Mirakhor (2007), An Introduction to Islamic Finance Theory and
Practice, John Wiley & Sons (Asia) Pte Ltd.
Mohd Obaidullah (2005), Islamic Financial Services, Islamic Economic Research Center,
King Abdul Aziz University.
Mei Pheng, Lee & Ivan Jeron, Detta (2007), Islamic Banking & Finance Law, Pearson Malaysia
Sdn Bhd.
Mohd Nasir Mohd Yatim and Amirul Hafiz Mohd Nasir,(2006), The Principles and Practice of
Islamic Banking & Finance, Pearson.
Jee Tzin Kit & K. Loghandran (1998), Operations Of Financial Institutions, Institut Bank-Bank
Malaysia (IBBM) Study Manual CF02.
Pang.J. (1988), Financing and Practice of Domestic and International Trade, Pelanduk
Publication.

10. Shangeri.M.S. (2000), A Model Of Pure Interest- Free Banking, Synergy Book International.
11. BIRT (1997), Unpublished seminar paper

Syllabus Content
1.0

Introduction to Islamic Financial System

2.0

Organization of Modern Banking

<> Operations within the Islamic Framework- Sources of Funds
<> Type of deposit account -Investment account

3.0

Organization of Modern Banking

<> Operations within the Islamic Framework- Uses of Funds

4.0

E banking and card services

5.0

Risks facing institutions offering Islamic financial services

<> Credit

6.0

<> Mark-up <> Liquidity

Equity Financing
<> Mudarabah & case study

7.0

<> Musyarakah & case study

Term Financing
<> Bai Bitamin Ajil(BBA)

8.0

<> Bai Al Inah

> Ijarah

Trade Financing

<> Letter of Credit

Working Capital
<> Islamic Accepted Bill

9.0

<> Operational

<> Letter of Guarantee <> Murabahah

<> Islamic Export Credit Refinancing(IECR)

Role of Treasury Department

Entrance / Exit Survey

No Question
1-1 I can explain function of Islamic financial system
I can explain the sources and application of fund in Islamic Banking
1-2
Financial System
1-3 I can discuss the type of deposit accounts apply in financial Institution.
I can illustrate the organization of modern Banking Operations within
2-1
the Islamic Framework The bridge between surpluss and deficit entity
I can distinguish type of Risks exposed by Islamic institutions that
2-2
offering Islamic financial services - credit, mark-up, liquidity and operational risks
I can explain the implication equity financing applying in Islamic finance
2-3
Musyarakah and Mudarabah
I can explain the implication of various Islamic financing applying term
2-4
financing methods i.e BBA, Bay Al Inah, Ijarah
3-1 I can demonstrate Islamic Trade Finance mechanism in Islamic Finance
I can illustrate how Islamic Financial Services apply its financing in
3-2
Murabahah Working Capital and Islamic Acceptance bill.
3-3 I can explicate the role of treasury in Islamic Finance

Scale

: 1 :Strongly Disagree , 2 :Disagree , 3 :Mixed Feeling , 4 :Agree , 5 :Strongly Agree

Ent Exit