Learn about the structure and tradability of Sukuk and the development and role of Islamic money markets. This Islamic Finance and Capital Markets course gives an overview of the Tradability of Sukuk, also known as Islamic bonds, and the development of Islamic Money Markets. You will learn about the different instruments and components of an Islamic Money Market. We will also discuss the role of money markets and the need for Shari’ah-compliant sources of funds.
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Additional Topics Include:
- Monetary Operations in Islamic Money Markets
- Credit Facilities Offered by Central Banks
- Monetary Operations and Public Debt Management
- Islamic Money and Foreign Exchange Markets
At the end of the course, you will learn about Islamic Money Markets through various Case Studies from Malaysia, Sudan, Pakistan and more.
No previous knowledge is needed.
Why Islamic finance is important for the global financial industry
Islamic finance has grown rapidly, with the trend expecting to continue. Although the concept has been around for much longer, Islamic finance only attained a formal status in Muslim-majority countries in the 1970s. Today, it has become a global phenomenon, eliciting increasing interest around the world, including from non-Muslim countries like the United Kingdom, Luxemburg, Kenya, South Africa, and Hong Kong. Islamic finance has grown into a huge industry with total worldwide assets estimated at about US$2 trillion.
Islamic finance has the potential to contribute to higher and more inclusive economic growth by increasing access of banking services to underserved populations. In addition, it has the potential to promote financial stability due to its risk-sharing feature and its financing being asset-backed and thus fully collateralized. Moreover, Islamic banks offer profit-sharing and loss-bearing accounts that can help mitigate losses and contagion in the event of banking sector distress. These are all indications that Islamic finance is converging to the global finance industry and hence all international finance professionals should be aware of Islamic finance.
What you'll learn
- Tradability, Structures and Potential of Sukuk
- Development of Islamic Money Markets
- Monetary Operations in Islamic Money Markets
- Case Studies in Islamic Money Markets
Syllabus
Week 1 – Tradability, Structures and Potential of Sukuk
Chapter Introduction
Tradability of Sukuk
Pre-fixed Rate of Return on Sukuk
Restrictions and Flexibility in Returns
Other Issues in Sukuk Tradability
Potential for Sukuk
Examples of Sukuk Issues in the Islamic World
Chapter Summary
Week 2 – Development of Islamic Money Markets
Chapter Introduction
Limited Scope of Islamic Money Markets
The Need for Shari’ah-Compliant Sources of Funds
The Role of an Islamic Money Market
The Negative Effects of Undeveloped Money Markets
Legal Amendments to Develop Islamic Money Markets
Shari’ah Issues in the Development of Islamic Money Markets
Tax Issues in Developing Islamic Money Markets
Instruments and Components of an Islamic Money Market
Trends in Liquidity Management by IFIs
Interbank Instruments Used by IFIs
Chapter Summary
Week 3 – Monetary Operations in Islamic Money Markets
Chapter Introduction
Credit Facilities Offered by Central Banks
Central Bank Deposit and Reserves
Examples of Facilities for IFIs
Market-based Financing Instruments
Tradability of Shari’ah-Compliant Instruments
Supervising Liquidity Management
Monetary Operations and Public Debt Management
Factors in the Growth of Islamic Money Markets
Policy Issues in Islamic Money Markets
Developing Shari’ah-compliant Money Market Instruments
Monetary Operations and Public Debt Financing
Islamic Money and Foreign Exchange Markets
Chapter Summary
Week 4 – Case Studies in Islamic Money Markets
Chapter Introduction
Overview of the Malaysian IIMM
Market-Based Instruments for Money Operations
Processes of IIMM Instruments
Shari’ah-Compliant Alternatives to Forex Swaps
Overview of Interbank Money Markets in Sudan
Sudanese Markets and Monetary Operations
Sudanese Payment Systems, Secondary and Forex Markets
Overview of Money Markets in Bahrain
Central Bank Facilities in Bahrain
Market-Based Instruments in Bahrain
Bahraini Payment Systems and Secondary and Forex Markets
Overview of Money Markets in Pakistan
Pool-Based Placement in the Pakistani Money Market
Parameters for Pool-Based Placement in Pakistan
Other Modes of Fund Placement in Pakistan
Standing Facilities, Payment Systems and Forex Markets
Chapter Summary
