I am Dr. Mohammed Kroessin, a development economist with over 15 years’ experience of working with Islamic development and financial institutions. I have formerly worked for Chambers of Commerce and the Centre for Enterprise in the UK, was Asst. CEO of Muslim Aid and is now heading Islamic Relief’s Global Islamic Microfinance Unit.
I am co-authoring this blog with Muniruddeen Lallmahomood. He is executive director at Century Banking Corporation Ltd (the only Islamic Bank licensed by the Bank of Mauritius), prior to his appointment; he was Consultant in Islamic Finance at the Central Bank of Mauritius and previously held the position of Regional Representative of Bait Al-Mashura Finance Consultations (Qatar), a licensed Shari’a Advisory firm. Muniruddeen is a guest professor in Islamic finance at University of Strasbourg and has published a number of peer review articles & participated in a number of international conferences.
Trends in Islamic Banking
Islamic finance has been a fast growing industry, now at an estimated US$1.9 trillion of assets under management mainly in the Arabian Gulf or Far East Asia. At the same time Muslim majority countries in Central & South Asia and North & Sub-Saharan Africa continue to have large proportions of the adult population without access to formal financial services.
This conundrum – according the CGAP less than 1% of microfinance globally is compliant with the stipulation of the Islamic faith, whilst Islamic banking has been growing phenomenally is at the heart of a new course at Frankfurt School of Finance & Management.
We believe that there is already massive interest in Islamic finance. Microfinance programs based on Islamic ethics can make a value addition to the global effort for financial inclusion. This is what our Certified Expert in Islamic Microfinance (CEIM) is all about.
What’s special about our new course?
Whilst the learning and training provision for both Islamic finance and microfinance respectively is plentiful, there is no single programme that adequately covers the dual nature of the competency requirements for Islamic microfinance professionals and similarly for the wider sector made up of some 300 microfinance institutions serving some 1.3 million poor people. This means that any Islamic microfinance institution (IMFI) or professional will have to invest doubly.
Through this course you will excel in applying portfolio management techniques and Sharia compliance tools tailored to Islamic financial services in emerging and developing markets.
For example, in the CEIM you will learn how to apply Islamic financial instruments such as Qard, trade based debt instruments such as Murabaha (Sale plus markup), Salam (Forward sale) and fixed income instruments such as Ijarah (Leasing) and equity based financing such as Musharaka and Mudaraba as financial tools in modern microfinance.
After having gone through the above concepts and its application, CEIM also covers the criteria for regulatory, governance and Sharia compliance frameworks in and to different legal structures that IMFI usually takes. A general overview of regulatory dimensions for microfinance, although these vary from jurisdiction to jurisdiction, is provided, with specific attention to IMFIs operating outside regulatory frameworks that recognize Islamic
The main distinction between Islamic and Conventional Microfinance institution is complying with the Sharia principles in the former institution. In this respect, the concept of Sharia compliance is discussed and the implications for management and governance in line with the industry best practices and according to the Standards of the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) are outlined.
Frankfurt School has always pioneered in educating people on Development Finance topics and how Development Finance can lift people out of poverty. By launching CEIM, in partnership with Islamic Relief Academy, the main objective is to educate people about the other type of Microfinance – Islamic Microfinance. Within this course we not only provide the basic understanding on Islamic Microfinance but also the basic knowledge on how to manage Islamic MF Institutes. In addition to the above mentioned topics, this course will provide you with necessary knowledge such as Managing Institutes, Risk management and understanding reports. Interesting enough? The course starts on every 1st March and 1st September. Join now and become a Certified Expert in Islamic Microfinance.