London School of International Business (LSIB)

What are the key principles of Islamic finance covered in the 6 months Level 5 Certificate in The Concepts of Islamic Finance and Banking qualification?

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

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 Level 5 Certificate in The Concepts of Islamic Finance and Banking qualification covers the following key principles:

Principle	Description
Prohibition of Riba	Islamic finance prohibits the payment or receipt of interest, as it is considered exploitative and unjust.
Risk-sharing	Parties involved in Islamic finance transactions share both profits and losses, promoting fairness and accountability.
Asset-backed financing	Islamic finance is based on tangible assets, ensuring investments are backed by real value.
Ethical investments	Islamic finance promotes investments in ethical and socially responsible projects, avoiding industries such as gambling and alcohol.

By understanding and applying these key principles, students of the Level 5 Certificate in The Concepts of Islamic Finance and Banking qualification will gain a comprehensive understanding of Islamic finance and its ethical framework.