In this course the key issues of Islamic Banking and Finance will be discussed. What are the rules that need to be respected? Based on these rules, financial contracts and assets have been developed, like Sukuk, Ijara and Musharaka. All these themes will be highlighted with case studies. This course is a joint activity of Utrecht University and STIE Perbanas, Surabaya, Indonesia.
The course will start with explaining the basic principles of Islamic Finance, which make Islamic banking different from traditional banking. The focus of the course will be on addressing these principles in order to meet the need for financial contracts in local and international business relations. An important rule regards the prohibition to pay interest. In this course we will discuss how to arrange contracts without interest payments. For instance there are contracts based on profit and loss sharing (Musharaka), contracts that resemble a lease contract (Ijara) and contracts that facilitate buying a house similar to a mortgage loan (Murabaha). Also there exist investments funds with assets like Sukuk, which are bonds in agreement with the Islamic rules. Participants will be given some theoretical background about these subjects and will work on case studies to get a feel for the practical implementation of the contracts.
Some basic knowledge about this can be important for students from many countries who have the ambition to start a career in the banking sector or in the finance department of an internationally operating company. Also for managers who are already employed by banks or companies with international operations this course may contribute to their competence of handling contractual issues with counterparts from other cultures.
Dr. Abdul Mongid (STIE Perbanas Surabaya), Prof.dr. Hans Visser (VU University)
Guest lecturer Dr. Raphie Hayat (Rabobank Netherlands), guest lecturer Rachida Talal MSc (Radboud University), guest lecturer Prof. dr. Arie Buijs (Utrecht University)
Prof. dr. Arie Buijs