Islamic Banking Code 8718 - AIOU Assignment

Course:  Islamic Banking (8718) Semester: Autumn, 2012
Level:  MS (Management Sciences) Total Marks: 100
ASSIGNMENT No. 1
Note: All questions carry equal marks.
Q. 1 Explain Islamic finance system in detail. Critically discuss the structure of Islamic finance system in Pakistan. Do you satisfy with this structure or not. Give your arguments with examples in both cases.
Q. 2 Define riba. Explore the causes to prohibit riba in the Islamic system.
Q. 3 Explain the nature of working capital and its importance in Islamic finance. Discuss the issues and practices of working capital financing in view of Islamic banking in Pakistan.
Q. 4 Discuss the various types of modes of Islamic financing. Also discuss why they are better than conventional banking? Give your arguments with examples.
Q. 5 Compare the capitalist and socialist economies with Islamic economic system with examples. Why Islamic economic system is better in your view? Give your arguments with examples in the light of Quran and Sunnah.
ASSIGNMENT No. 2
Total Marks: 100
Note: All questions carry equal marks.
Q. 1 Explain the nature of Murabaha. Evaluate the Murabaha system operated in Pakistan in detail. Give your suggestions for improvements in the light of Quran and Sunnah.
Q. 2 Define Slam. Discuss the mechanism of salam and its operational procedure in Islamic banking system in Pakistan.
Q. 3 Define Ijarah. Discuss the operational and termination process of Ijarah in care financing as per practice adopted by the commercial banks under Islamic banking system.
Q. 4 Define equity system in Islamic finance. Evaluate the impact of equity funds system on economy and individual investor in Pakistan.
Q. 5 Define takaful. Critically evaluate the operational process of takaful in Pakistan. Give your suggestions for improvements in the light of Quran and Sunnah.
ALLAMA IQBAL OPEN UNIVERSITY, ISLAMABAD
(Department of Business Administration)
Course:  Islamic Banking (8718) Semester: Autumn, 2012
Level:  MS (Management Sciences) Total Marks: 100
Unit No. 1 History and Development of Islamic Banking System
1.1 The Structure of financial System in Pakistan
1.2 Development of Islamic Banking System in Pakistan (Islamic Finance Movements in Pakistan)
1.3 Problems Issues and Challenges in Pakistan
Unit No. 2 Salient Features of Islamic Financial System
2.1 Basic Difference Between Capitalist and Islamic Economy
2.2 Philosophical basis of Islamic Economics and Finance
2.3 Riba in Quran and Sunnah
2.4 Rational for Prohibition of Interest
Unit No. 3 Riba Put on Trial
3.1 In the Federal Shariat Court of Pakistan-Jurisdiction of FSC, Bar on the Jurisdiction, Petitions and Defiance, Arguments Against and for Interest, The Judgement, Implications of the FSC Judgement, List of Laws Held by the FSC Repugnant to the Shariah
Unit No. 4 Islamic Modes of Financing-I
4.1 Alternatives to Interst-Qard-e-Hasana and Service charge in Pakistan
4.2 Mushrakah and Mudarabah rules in Pakistan
4.3 Financing of a Single Transaction, Financing of Working Capital in Pakistan
Unit No. 5 Islamic Modes of Financing-II
5.1 Bai Muajjal (Sale on Deferred payment Basis) System in Pakistan
5.2 Issues Involved in Murabaha, Different Pricing for Cash and Credit Sales, Basic Mistakes in Murabaha Financing in Pakistan
Unit No. 6 Islamic Modes of Financing-III
6.1 Ijarah: Basic Rules and Securitization in Pakistan
6.2 Variable Rentals in Long Term Leases in Pakistan
6.3 Residual Value of Leased Asset in Pakistan
Unit No. 7 Islamic Modes of Financing-IV
7.1 Salam and Istisna Practice in Pakistan
7.2 Time of Delivery Management in Islamic Banks Regulated in Pakistan
Unit No. 8 Islamic Investment Funds
8.1 Principles of shariah governing Islamic Investment Funds system in Pakistan
8.2 Equity funds, Ijarah Fund, Commodity Fund in Pakistan
8.3 Murabaha fund, Bai-al-Dain and Mixed Fund in Pakistan
8.4 Conditions for Investment in Shares practice in Pakistan
8.5 Principle if Limited Liability, Waqf, Baitul-Mal, Joint Stock, Inheritance Under Debt as per sharia principles and SBP guidelines
Unit No. 9 Operational Guidelines
Proposed Structure of Banks-Reshaping Banking Operations, Deposit-Fund Raising, Deposit Tkaful corporation, Establishment of Islamic Fund in the Banks in Pakistan
9.1 Arbitration and Penalty Clause in the Islamic Banking System of Pakistan
9.2 Islamic Banking Services operations in Pakistan
9.3 Risk Management by Islamic Banks regulations in Pakistan
9.4 Regulatory Issues in Islamic Financial System in Pakistan
Recommended Books:
Usmani Taqi Muhammad (2010) Islamic Finance. Karachi. Daarual Ishaat.
Ayub Muhammad (2010) Islamic Banking and Finance: Theory and Practice. Karachi. State Bank of Pakistan
Rahman A. Yahia (2010) The Art of Islamic Banking and Finance: Tools and Techniques for Community-Based Banking. John Wiley and Sons
Jaffer Sohail (2009) Islamic Retail Banking and Finance: Global Challenges and Opportunities. Euromoney Books