COURSE INFORMATION Course Title: PARTICIPATION BANKING

Code	Course Type	Regular Semester	Theory	Practice	Lab	Credits	ECTS
BAF 308	C	6	3	0	0	3	6

Academic staff member responsible for the design of the course syllabus (name, surname, academic title/scientific degree, email address and signature)	NA
Lecturer (name, surname, academic title/scientific degree, email address and signature) and Office Hours:	Erinda Imeraj
Second Lecturer(s) (name, surname, academic title/scientific degree, email address and signature) and Office Hours:	NA
Teaching Assistant(s) and Office Hours:	NA
Language:	English
Compulsory/Elective:	Elective
Classroom and Meeting Time:
Course Description:	Participation banking (or Islamic banking) is banking or banking activity that is consistent with the principles of Islamic law (Sharia) and its practical application through the development of Islamic economics. Islamic banking (or participant banking) is banking or banking activity that is consistent with the principles of Islamic law (Sharia) and its practical application through the development of Islamic economics.
Course Objectives:	The course aims to give the student the basic theoretical and practical knowledge about Interest Free Banking commonly known as Islamic banking.

COURSE OUTLINE

Week	Topics
1	Introduction
2	The Sources and Interpretation of Islamic law
3	Global Development of Interest free Financial Institutions
4	The Main Products of Interest Free Banking
5	Partnership (Musharakah) and Modern Corporations
6	Diminishing Partnership (Musharakah Mutanaqisa)
7	Cost-Plus Financing (Murabaha)
8	Midterm exam
9	Forward Selling and Manufacturing Contracts (Salam and Istisna’)
10	Leasing (Ijarah) and Ijarah Muntahia Bittamleek / Guarantees
11	Interest Free Investment Funds / Interest Free Loan (Qard Hasen)
12	Cash Loan - Monetization (Tawarruq)
13	Investment – Sukuk / Trading in Currencies
14	Challenges for Interest Free Financial Providers; Opportunities in Europe (Government policies and tax reforms)

Prerequisite(s):
Textbook:	1. Karbani (2015). Mastering Islamic Finance: A practical guide to Sharia-compliant banking, investment and insurance, 1/e Pearson. 2. Usmani, Muhammad Taqi. (2002), An Introduction to Islamic Finance, Maktaba Ma'ariful Qur'an, Karachi-Pakistan 3. Accounting and Auditing Organisation for Islamic Financial Institutions, Shari'a Standards for Islamic Financial Institutions, 1429 H – (2008), Manama, Bahrain.
Other References:	1. Abdulkader Thomas, Stella Cox, Bryan Kraty, (2005) Structuring Islamic Finance Transactions, Published by Euromoney Books, Nestor House, Playhouse Yard, London EC4V 5EX, UK.
Laboratory Work:
Computer Usage:
Others:	No

COURSE LEARNING OUTCOMES

1	understand the rationale behind the development of the Interest Free Banking Industry
2	understand the basic concepts of Interest Free Banking
3	develop an appropriate level of understanding of the main principles of Interest Free Islamic Banking
4	acquire essential knowledge about fundamental Islamic Banking products
5	get understanding of the primary tools for structuring Islamic Financial Transactions

COURSE CONTRIBUTION TO... PROGRAM COMPETENCIES (Blank : no contribution, 1: least contribution ... 5: highest contribution)

No	Program Competencies	Cont.
Bachelor in Banking and Finance (3 years) Program
1	The students are gained the ability to look at the problems of daily life from a broader perspective. They gain the needed skills not only to understand economic problems in banking and finance but also to construct a model and defend in meaningful way.	5
2	They have knowledge about the finance and banking.	5
3	They have knowledge about the money and banking.	5
4	They have knowledge about the international finance and banking.	4
5	They have ability to use mathematical and statistical methods in banking and finance.	4
6	They know how to use computer programs in both daily office usage and statistical data evaluations in banking and finance department.	5
7	They have necessary banking and finance skills that needed in private and public sector.	4
8	They are intended to be specialist in one of departmental fields that they choose from the list of general economics, finance economics, public finance, corporate finance, finance management, international finance markets and institutions, banking and central banking, international finance and banking, money and banking, international trade and banking.	4
9	They have ability to utilize fundamental economic theories and tools to solve economic problems in banking and finance.	5
10	They are aware of the fact that banking and finance is a social science and they respect the social perspectives and social values of the society’s ethics.	5

COURSE EVALUATION METHOD

Method	Quantity	Percentage
Midterm Exam(s)	1	30
Project	1	20
Final Exam	1	40
Attendance		10
	Total Percent:	100%

ECTS (ALLOCATED BASED ON STUDENT WORKLOAD)

Activities	Quantity	Duration(Hours)	Total Workload(Hours)
Course Duration (Including the exam week: 16x Total course hours)	16	4	64
Hours for off-the-classroom study (Pre-study, practice)	16	2	32
Mid-terms	1	12	12
Assignments			0
Final examination	1	16	16
Other	1	26	26
Total Work Load:			150
Total Work Load/25(h):			6
ECTS Credit of the Course:			6