Islamic banking and conventional banking are two distinct systems that operate on different principles and practices. In the context of the 9 months Level 5 Certificate Concepts of Islamic Finance and Banking course, it is crucial to understand the key differences between the two.
| Islamic Banking | Conventional Banking |
|---|---|
| Based on Sharia principles, which prohibit the payment or acceptance of interest (riba). | Interest-based system where interest is charged and paid on loans and deposits. |
| Focuses on profit-sharing and risk-sharing arrangements, promoting fairness and ethical conduct. | Primarily profit-driven, with a focus on maximizing returns for shareholders. |
| Assets and transactions must comply with Islamic law, avoiding industries such as gambling, alcohol, and pork. | No restrictions on the types of assets or industries in which investments can be made. |
By enrolling in the 9 months Level 5 Certificate Concepts of Islamic Finance and Banking course, students will gain a comprehensive understanding of these differences and how they impact the financial industry. This course will delve into the principles of Islamic finance, the regulatory framework governing Islamic banking, and the practical applications of Islamic financial products.
Upon completion of this course, students will be equipped with the knowledge and skills to navigate the complexities of Islamic banking and contribute to the growth of ethical and sustainable financial practices.