Islamic finance is guided by principles that are rooted in ethics and morality. In the Level 5 Certificate Concepts of Islamic Finance and Banking course, students delve into the ethical considerations that shape the Islamic financial system. Some of the key ethical considerations addressed in this course include:
| 1. Prohibition of Riba (Interest) | Islamic finance prohibits the payment or receipt of interest (riba). This is based on the belief that money should not generate more money without any effort or risk involved. |
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| 2. Risk-sharing | Islamic finance promotes risk-sharing between parties involved in financial transactions. This encourages a more equitable distribution of risk and reward. |
| 3. Avoidance of Uncertainty (Gharar) | Islamic finance prohibits transactions that involve excessive uncertainty (gharar). This is to ensure transparency and fairness in all dealings. |
| 4. Social Responsibility | Islamic finance emphasizes the importance of social responsibility and ethical investing. Investments should benefit society as a whole and adhere to Islamic principles. |
By addressing these ethical considerations in the Level 5 Certificate Concepts of Islamic Finance and Banking course, students gain a comprehensive understanding of how Islamic finance upholds ethical standards while promoting financial inclusion and social welfare.