Banking Services

Islamic Banking & Finance - Part 2


This eCourse consists of two modules. Module 1 covers Islamic financial instruments. They are shari'a-compliant deposit and investment products that are based on classical nominate contracts. These contracts are sufficiently flexible to cover many contemporary requirements. The market for Islamic financing products is dominated by banks, who engage in transactions that are based on real economic activity. Products that are haram (forbidden in Islam) are not offered.

This module looks at the key types of deposit and investment product offered by Islamic banks and examines the challenges faced by these banks as the market matures.

Module 2 covers Islamic money and capital markets in detail.
The Islamic financial markets can be broadly divided into sharia’-compliant money markets and capital markets.
Modern financial markets, including depository institutions, cannot function without efficient and robust money markets. This is a challenge for Islamic finance as interest (riba) is forbidden and money market instruments are difficult to structure on a profit-loss sharing (PLS) basis. However, the industry is gradually witnessing more innovation and sophistication in money markets and is starting to address these challenges. The other strand of Islamic financial markets is capital markets. Islamic finance has had its greatest success here – especially in the area of sukuk, the Islamic equivalent of conventional bonds, and Islamic funds.

This module describes the underlying principles that affect these markets, introduces various market instruments, and discusses equity screening criteria as well as the issues and challenges specific to Islamic markets.


On completion of this course, you will be able to:
- Describe the types of contract used in Islamic finance
- Outline the main shari'a-compliant deposit and investment products
- Examine the key forms of Islamic financing
- Discuss the main challenges facing Islamic finance
- Describe the key types of money market instrument used in Islamic finance
- Explain the main products used in Islamic capital markets
- Examine the key forms of Islamic financing
- Discuss the main challenges facing Islamic finance


Module 1: Islamic Banking & Finance - Financial Instruments
Topic 1: Islamic Law of Contract
Topic 2: Islamic Banking: Deposits & Investments
Topic 3: Islamic Banking: Modes of Financing
Topic 4: Islamic Banking: Issues & Challenges

Module 2: Islamic Money & Capital Markets
Topic 1: Islamic Money Markets
Topic 2: Islamic Capital Markets


Relevant Subject
Type 9 - Asset management
SFC:2.00, PWMA:2.00
Chinese Securities Association of Hong Kong (HKCSA): HK$670
Non-Member: HK$960
All Member: HK$640
Staff of Corporate Member: HK$640