Islamic Treasury and Risk Management Products
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Islamic Treasury and Risk Management Products Course
Introduction:
Islamic Finance Training presents a course that aims to analyze treasury and risk management products offered by Islamic Financial Institutions (IFIs) in various jurisdictions.
Delegates will be led through the vocabulary and nomenclature of Islamic finance applicable to the Islamic treasury. Various Islamic toolkits will be examined to learn how they are applied in the ‘money market’ and risk management activities.
Islamic Treasury & Risk Management Products training course will also examine how Sukuk is relevant to Treasury activities – be it for liquidity management, long-term funding options, or capital adequacy purposes. It will also look at how the various Islamic tools are applied to manage forex and rate risks
Course Objectives:
By the end of this Islamic Treasury & Risk Management Products training course, participants will be able to:
- Identify and manage risk in Islamic Treasury products
- Comparative analysis of treasury and risk management products in various
- jurisdictions
- Application of various Islamic toolkits in the Islamic money markets
- Manage foreign exchange instruments and associated rate risks
Who Should Attend?
Islamic Treasury & Risk Management Products training program is ideal for:
- Those who wish to understand the main Islamic principles and concepts which relate to Islamic Banking and finance.
- Islamic Finance professionals
- Corporates and banks issuing Sukuk
- Islamic investors in Sukuk
Course Outlines:
The Nature of Money & Implication on Treasury
● The rules of Sarf and contract
● Riba Al-Nasiah
» Discussion: identifying assets that may be traded or
pledged from a Shari'a perspective
● Overview of traditional Money Market activities:
» Deposit & Interbank transactions
» Tradable Instruments
» Repo
Key Islamic Depository Tools
● Summary rules for non-remunerative deposits:
» Qard/Wadiah deposits
● Summary rules for remunerative deposits:
» Mudarabah deposits
» Wakalah deposits
» Murabaha deposits
● Traditional Intrabank Relationship: Fund Transfer Pricing
(FTP), Inter-branch Pricing (IBP) etc
Main Islamic Interbank Tool
● Murabaha vs. Tawarruq vs. Reverse Murabaha - is there any difference?
● Shari'a is concerned about this tool
● Brokers, OTC, and live warrants
● Breakage, Back value, and compounding
● Suq al Sila - Murabaha and Tawarruq in Malaysia
● Standardized documents: IIFM, AIBIM
● Leakage of Islamic funds - what is this? How do different markets deal with this?
Other Islamic Interbank Tool
● Wakalah to do Murabaha vs. Investment Wakalah - what’s the difference?
● Case study: Investment Dar vs. Blom Interbank Wakalah
● Interbank Mudarabah
● Wadiah for hibah & Wadiah for points
Tradable Instruments
● A brief review of traditional tradable tools:
» Certificate of Deposits
» Government Securities (T-Bills etc)
» Banker’s Acceptance
» Commercial Papers
» Quotation basis: yield vs. discount
● Does the Islamic market have alternatives for all the tools above?
Introduction to Sukuk - alternative Islamic tradable instruments
● Short-term, high-grade issuance for Basel III:
» Central Bank of Bahrain Salam Sukuk
» Short term Sukuk Ijarah
