London School of International Business (LSIB)

What are the key principles of Islamic finance covered in the Rqf Level 5 Certificate in The Concepts of Islamic Finance and Banking online?

Key Principles of Islamic Finance Covered in the RQF Level 5 Certificate in The Concepts of Islamic Finance and Banking Online

Islamic finance is based on principles that adhere to Sharia law, which prohibits the payment or receipt of interest (riba) and promotes risk-sharing and ethical investments. The RQF Level 5 Certificate in The Concepts of Islamic Finance and Banking covers the following key principles:

Principle	Description
Prohibition of Riba	Islamic finance prohibits the payment or receipt of interest, as it is considered exploitative. Instead, profit-sharing arrangements are used.
Risk-Sharing	Parties in Islamic finance share both profits and losses, promoting a more equitable distribution of risk.
Asset-Backed Financing	Islamic finance requires transactions to be backed by tangible assets, promoting transparency and reducing speculation.
Ethical Investments	Islamic finance prohibits investments in industries such as alcohol, gambling, and pork, promoting socially responsible investing.

By understanding and applying these key principles, students of the RQF Level 5 Certificate in The Concepts of Islamic Finance and Banking online course will gain a comprehensive understanding of how Islamic finance operates and its ethical foundations.