Islamic finance is guided by ethical principles that differentiate it from conventional finance. In the Level 5 Certificate Concepts of Islamic Finance and Banking (fast-track) course, students delve into the ethical considerations that underpin Islamic finance. Some of the key ethical principles discussed 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. |
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| 2. Prohibition of Gharar (Uncertainty) | Islamic finance also prohibits transactions that involve excessive uncertainty (gharar). This is to ensure transparency and fairness in all dealings. |
| 3. Promotion of Risk-Sharing | Islamic finance encourages risk-sharing between parties, promoting a more equitable distribution of profits and losses. |
| 4. Social Responsibility | Islamic finance emphasizes social responsibility and ethical investing, ensuring that investments are made in line with Islamic values. |
By understanding and applying these ethical considerations in Islamic finance, students in the Level 5 Certificate Concepts of Islamic Finance and Banking (fast-track) course are equipped to navigate the complexities of the industry while upholding the principles of fairness, transparency, and social responsibility.