Islamic banking and conventional banking are two distinct systems that operate on different principles and practices. In the context of the Ofqual Level 5 Certificate Concepts of Islamic Finance and Banking part time course, it is crucial to understand the key differences between the two.
| Islamic Banking | Conventional Banking |
|---|---|
| Operates based on Shariah principles, which prohibit the payment or acceptance of interest (riba). | Operates on the principle of paying and receiving interest on loans. |
| Focuses on profit-sharing and risk-sharing arrangements, promoting a more equitable distribution of wealth. | Primarily focuses on lending money for a predetermined return. |
| Investments are made in ethical and socially responsible projects, avoiding industries such as gambling, alcohol, and tobacco. | Investments are made based on profitability, without strict ethical considerations. |
By enrolling in the Ofqual Level 5 Certificate Concepts of Islamic Finance and Banking part time course, students will gain a comprehensive understanding of the principles and practices of Islamic banking, as well as the differences between Islamic and conventional banking systems. This knowledge is essential for individuals looking to pursue a career in Islamic finance or banking, where adherence to Shariah principles is paramount.
Overall, the course provides a unique opportunity to delve into the world of Islamic finance and banking, offering insights into a rapidly growing industry that is reshaping the global financial landscape.