London School of International Business (LSIB)

What are the key principles of Islamic finance covered in the 9 months Level 5 Certificate in The Concepts of Islamic Finance and Banking course?

Key Principles of Islamic Finance Covered in the Level 5 Certificate Course

Islamic finance is based on principles that adhere to Sharia law, which prohibits the payment or receipt of interest (riba). The Level 5 Certificate in The Concepts of Islamic Finance and Banking course 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 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 ethical and socially responsible investing.

By understanding and applying these key principles, students in the Level 5 Certificate course will gain a comprehensive understanding of Islamic finance and banking, preparing them for a successful career in this growing industry.