Islamic Banking and Finance MSc

Course title:	MSc Islamic Banking and Finance
Apply:	direct to the University
Start (ft):	September
Mode:	full-time
Duration:	1 year full-time
Location:	Putteridge Bury campus
Faculty:	The Business School
Department:	School of Law

Summary

Islamic banking refers to a system of banking that is Shari’a compliant and which has an increasing importance in Muslim countries and in Western marketplaces.

The need to satisfy a growing Muslim clientele prompted a reply from countries such as the United Kingdom to adopt Islamic banking and financial instruments as well as to work on possible conciliation between the two sets of banking instruments.

This necessitates a high degree of innovation which makes this field extremely dynamic. It is indeed necessary to develop a range of new products for customers seeking compliance with Shari’a.

The focus of the course is set on these objectives.

Islamic banking is a system that mainly exists in the private context or in semi private companies. Questions are raised as to its application in the public sphere. Countries like Egypt, Saudi Arabia, Malaysia, Indonesia, Dubai, Oman or Pakistan are all case studies regarding not only the private and public divide; the wide range of countries which have adopted Islamic banking practices demonstrate the importance to adapt such banking tools to address either Muslim customers in the above-mentioned countries or in the UK.

This is why banks that have opened branches in these countries must adapt their banking techniques, instruments and strategies.

Additionally, Islamic banking is not a new phenomenon but has known a revival since the end of the 20th century because of the disenchantment with capitalist values that are often associated, rightly or wrongly, with Western values. Therefore, the Islamic banking system appears as a source for ethics in financial dealings.

Over the last decade Islamic Banking has seen a strong growth in financial places around the world. While first attempts to give Islamic credits were made in a rural development bank in Upper Egypt in 1963, the system was adopted by commercial banking during the 1970's with the foundation of financial institutions such as the Dubai Islamic Bank (founded in 1975), the Faisal Islamic Bank (1977) and the Bahrain Islamic Bank (1979).

Especially in the Gulf states Islamic banking products are today an established part of the commercial world and widely available for companies and private customers. Western financial institutions have also expanded into the field, for example HSBC through its subsidiary 'Amanah'.

Consequently, Islamic banking, operations and instruments have developed into a vibrant financial sector. Rules running from the prohibition of floating interest rates (riba) to the ethics of banking (Haraam) are at the core of the system.

The main issue of current Islamic Finance is to apply these techniques and instruments to a modern setting, with the aim to provide financial products such as loans, mortgages or bonds, that are needed in today's commercial surrounding, but that are also 'Sharia-Compliant', i.e. in line with Islamic religious rules on commerce.

Another major issue is that Islamic banking and financial tools have been developed to be applied in the private sector rather than the public space. The private – public divide raises questions as to the efficiency of transferring Islamic tools and strategies to a public banking system in Muslim countries and in the West.

Why choose this course?

You will benefit from training in Islamic banking as well as core training in Islamic studies.

Career Opportunities

The employability skills you will develop will allow you to work either in the West, representing Muslim interests, or in Muslim countries, and will empower you to participate in a rapidly emerging new area for western commercial institutions.

The MSc in Islamic Banking is designed to equip you for a wide range of careers in banks, international organisations, investment banks, securities firms, portfolio managers, finance departments of industrial and service companies, consultants, central banks, auditors, multinational financial organizations, retail and investment banking, regulatory bodies and consultancy.

Teaching/learning methods and strategies

The provision of teaching and pastoral support in order to create an appropriate and relevant learning environment for you is seen as the prime responsibility of the academic staff.

We reflect the mission of the University within the classroom and ensure that you can understand the mechanisms that have been created as part of your teaching schemes to assist you.

These include the strong emphasis placed upon the seminar system, the use of various assessment points within each unit and prompt feedback from assignments. These strategies are designed to ensure that you achieve your maximum potential.

Units will typically be taught in a one two-hour block per week or fortnightly. Classes will be small enough to support an interactive learning environment, with group activities, and discussion. All units will be supported by the University’s on-line learning environment, BREO, which will provide access to course materials and discussion groups.

Staff research and consultancy experience will be used to enhance teaching and learning wherever possible. The course team has strong connections with practice, through external consultancy work and links with professional bodies.

You will benefit from an extensive introduction to the use of computers, computer programmes and computer-based technology, which will help you prepare for twenty-first-century methods of teaching and learning.

This is complemented by library exercises which aim to develop further skills in researching law material.

In the second term, the emphasis moves progressively to more independent forms of learning. At this stage, you will be expected to adopt an analytical approach to study and a critical stance towards the reading you are encouraged to pursue.

This is mainly done through the Dissertation unit and by way of dissertation meetings with your supervisor.
The process continues into the third term when you will be expected to operate within an increasingly independent learning context.

When working on your dissertation you will engage in self-directed and independent learning with guidance from your supervisor.

Assessment

The assessment strategy for the MSc in Islamic Banking has been carefully designed to try and ensure the utmost participation by you in the learning process. Therefore, attendance at tutorials and seminars are compulsory.

There will be a spread of assessment types. Individual assessments take the form of essays, presentations, projects, oral presentations, group working and seminar participation.

In most cases, the course units will have at least two assessment points containing different types of assessment.

It is felt by the law team that this is the best way to assess both the breadth and the depth of your knowledge.

For example, in an individual unit, breadth of knowledge and analysis may best be tested by a presentation. By contrast, depth of knowledge and analysis may be tested by a written essay, or seminar participation.

The weighting given to assessment points reflects the contribution made to achieving the aims and objectives of the unit.

The use of coursework such as essays, group working and seminar participation also allows for feedback comments.

Dissertation/project and research

The dissertation will provide a unique opportunity for you to expand upon the work done in the course units, to integrate material widely in the field of Islamic commercial law across your studies and to continue to develop the skills learned in the course of the taught programme.

The dissertation is an individual project undertaken in a highly ‘self centered’ manner.

To fully prepare you for this task, there will be lectures, with a number of assessments to provide a wealth of feedback, as well as preparation for the dissertation.

The dissertation requires careful planning, a high level of motivation, and encourages attention to detail in both content and in presentation.

A dissertation requires proper citation and referencing. This part of the development of legal writing skills will be partially acquired from Legal Research and Methodology taught within this unit and is essential for Master’s level of work.

Further details about the course

You will have two units to choose from a choice of three courses.

These course units will provide a solid theoretical background in Islamic law, Islamic commercial law and Islamic finance law.

You will take two core units that will provide expert knowledge in Islamic banking and Islamic banking and financial instruments and operations.

Recommended reading

Essential:
Jackson-Moore, Elisabeth, The International Handbook of Islamic Banking and Finance (Cranbrook, Kent : Global Professional Pub., 2009), ISBN 978-1906403317

Further Resources:
Aldohni, Abdul Karim, The Legal and Regulatory Aspects of Islamic Banking (London: Routledge, 2010), ISBN 978-0415555159

Al Omar Fuad, Islamic Banking: Theory, Practice and Challenges (London: Atlantic Highlands, NJ : Zed Books, 1996), ISBN 978-1856493437

Ayub, Muhammad, Understanding Islamic Finance, (London: John Wiley & Sons, 2007), ISBN 9780470030691

DiVanna, Joseph A., Understanding Islamic Banking: the value proposition that transcends cultures (Leonardo and Francis Press Ltd; 1st Edition edition, 2006). ISBN 978-1905687008

Iqbal, Munawar and Molyneux, Philip, Thirty Years of Islamic Banking: History, Performance and Prospects (Palgrave/McMillan, 2005), ISNB 9781403943255

Nik, Norzul Thani et al., Law and Practice of Islamic Banking and Finance (Petaling Jaya, Selangor, Malaysia : Sweet & Maxwell Asia, 2008), ISBN 9839088769

Ray, Nicholas Dylan, Arab Islamic Banking and the Renewal of Islamic Law (London ;Boston : Graham & Trotman, 1995), ISBN 978-1859661048

Roslay, Saiful, Critical Issues on Islamic Banking and Financial Markets: Islamic Economics, Banking and Finance, Investments, Takaful and Financial Planning (Bloomington, IN: Author House, 2005), ISBN 978-1420837377

Entry requirements

You should normally have a good honours degree or equivalent.

Special entry requirements

Applicants with English as their second language must show proof of competency in oral and written English generally to IELTS 6.5 band or above or its equivalent.

Attendance

Weekly attendance is required for the full-time course. Units will typically be taught in a one two-hour block per week or fortnightly.

Find out more

If you need further information about the academic content of this course please contact Dr Anicée Van Engeland, MSc Course leader.

E: anicee.vanengeland@beds.ac.uk
T: +44 (0)1234 400400 (switchboard)

Related courses

• LLM Islamic Commercial Law
• LLM International Commercial Law

Further Study Opportunities

M.Phil or PhD
Legal Practice course/Bar Vocational Course

General Enquiries

• www.beds.ac.uk/howtoapply for information about standard entry requirements, application routes, open days, fees and funding.
• T: +44 (0)1582 489286 UK/EU Admissions
• T: +44 (0)1582 489326 International Admissions
• Order a prospectus form. Enquire about courses and order a printed undergraduate or postgraduate prospectus.
• T: +44 (0)1234 400 400 University switchboard