Minimum Academic Entry

Applicants should normally possess:

• Completed secondary/high-school education or equivalent qualification.

Examples include:

• High School Diploma
• GCSE/GCE O-Level
• A-Level
• International Baccalaureate
• National secondary-school certificate
• Equivalent internationally recognised qualification.

Professional Entry

Applicants with relevant professional experience or qualifications in:

• Banking
• Islamic banking
• Finance
• Accounting
• Economics
• Business administration
• Investment
• Treasury
• Risk management
• Compliance
• Shari’ah studies
• Financial services

may be considered under mature/professional-entry provisions.

International Applicants

International applicants may be required to provide:

• Academic certificates and transcripts
• Identification/passport
• English-language evidence where applicable
• Certified translations where documents are not in English
• Qualification equivalency documentation where required.

Duration: 2 Years
Structure: 4 Semesters
Delivery: On-Campus | Online | Hybrid | In-House
Level: Professional Diploma
Language: English

SEMESTER I

ISLAMIC BANKING, SHARI’AH & CORE OPERATIONS

1101. Foundations of Islamic Banking & Finance

• Evolution of Islamic finance
• Principles of Islamic economics
• Islamic banking models
• Prohibition of riba
• Gharar and maysir
• Risk-sharing principles
• Asset-backing and real economic activity
• Islamic banking versus conventional banking
• Islamic financial institutions
• Global Islamic banking markets

1102. Shari’ah Principles & Islamic Financial Contracts

Detailed study of:

• Murabahah
• Mudarabah
• Musharakah
• Ijarah
• Salam
• Istisna’a
• Wakalah
• Qard
• Kafalah
• Rahn
• Hibah

Students learn how contracts are translated into actual financial products and operational processes.

1103. Islamic Banking Operations

• Customer onboarding
• Account opening
• Islamic deposits
• Current accounts
• Savings accounts
• Investment accounts
• Financing applications
• Transaction processing
• Payments and transfers
• Clearing and settlement
• Reconciliation
• Branch operations
• Back-office operations
• Core banking systems

1104. Islamic Retail Banking Products

• Islamic savings
• Current accounts
• Home finance
• Vehicle finance
• Personal finance
• SME finance
• Islamic cards
• Islamic deposits
• Investment accounts
• Digital Islamic banking

1105. Islamic Banking Accounting I

• Accounting principles for Islamic financial institutions
• Islamic transaction accounting
• Murabahah accounting
• Mudarabah accounting
• Musharakah accounting
• Ijarah accounting
• Income recognition
• Profit allocation
• Investment-account accounting
• Financial statement fundamentals

AAOIFI maintains dedicated accounting standards covering Islamic financial institutions and specific Islamic financing arrangements.

1106. Islamic Banking Law, Ethics & Professional Practice

• Islamic banking legal environment
• Regulatory institutions
• Contractual principles
• Fiduciary responsibilities
• Professional ethics
• Consumer protection
• Conflict of interest
• Conduct of business
• Shari’ah compliance
• Professional responsibilities

SEMESTER II

ISLAMIC FINANCING, CREDIT & FINANCIAL ACCOUNTING

1201. Islamic Financing & Credit Operations

• Islamic financing lifecycle
• Financing application
• Customer assessment
• Credit analysis
• Financing approval
• Documentation
• Collateral/security
• Disbursement
• Financing monitoring
• Restructuring
• Recovery

1202. Islamic Credit Risk Management

• Credit risk in Islamic banking
• Counterparty risk
• Financing concentration
• Default risk
• Collateral risk
• Profit-rate risk
• Equity investment risk
• Risk associated with different Islamic contracts
• Credit assessment
• Risk rating
• Early-warning systems

IFSB’s Islamic banking risk framework specifically addresses risks arising from Islamic financial contracts and the distinctive risk profile of Islamic financial institutions.

1203. Islamic Banking Accounting II

• Advanced Islamic transaction accounting
• Investment accounts
• Profit allocation
• Impairment
• Financing income
• Provisioning
• Financial statements
• Disclosures
• Consolidation
• Accounting controls
• Accounting systems

1204. Financial Management for Islamic Financial Institutions

• Financial management principles
• Financial planning
• Budgeting
• Cost management
• Profitability analysis
• Financial ratios
• Capital management
• Working capital
• Financial performance
• Management reporting
• Financial decision-making

1205. Islamic Banking Compliance, KYC & AML/CFT

• Customer due diligence
• KYC
• Enhanced due diligence
• Beneficial ownership
• PEPs
• Transaction monitoring
• Suspicious transactions
• AML/CFT controls
• Sanctions
• Fraud prevention
• Shari’ah compliance monitoring

1206. Applied Islamic Banking Operations Project

Students undertake an integrated simulation covering:

Customer onboarding → Islamic account opening → financing application → contract selection → approval → documentation → transaction processing → accounting → profit calculation → compliance → monitoring → management reporting.

SEMESTER III

ISLAMIC TREASURY, INVESTMENT & RISK MANAGEMENT

2101. Islamic Treasury & Liquidity Management

• Islamic treasury functions
• Liquidity management
• Cash management
• Interbank Islamic markets
• Commodity Murabahah
• Tawarruq
• Short-term Islamic investments
• Liquidity forecasting
• Liquidity buffers
• Liquidity risk
• Treasury reporting

IFSB has dedicated guidance on liquidity-risk management for institutions offering Islamic financial services, reflecting the distinctive liquidity challenges of Islamic banking. (IFSB)

2102. Islamic Investment & Portfolio Management

• Islamic investment principles
• Shari’ah screening
• Equity investments
• Sukuk
• Islamic funds
• Real estate investment
• Alternative investments
• Portfolio construction
• Investment risk
• Performance measurement
• Asset allocation

2103. Sukuk & Islamic Capital Markets

• Introduction to Sukuk
• Sukuk structures
• Asset-backed and asset-based structures
• Sukuk issuance
• Sukuk investment
• Sukuk risks
• Islamic capital markets
• Regulatory considerations
• Investor protection
• Sukuk governance

2104. Islamic Banking Risk Management

• Enterprise risk management
• Credit risk
• Market risk
• Liquidity risk
• Operational risk
• Shari’ah non-compliance risk
• Displaced commercial risk
• Equity investment risk
• Rate-of-return risk
• Strategic risk
• Reputational risk
• Risk reporting

IFSB’s standards include risk management, capital adequacy, governance, conduct, disclosure and supervisory review frameworks specifically adapted to Islamic financial institutions.

2105. Islamic Financial Analysis & Performance Management

• Financial statement analysis
• Islamic bank performance indicators
• Profitability
• Liquidity
• Capital adequacy
• Asset quality
• Efficiency
• Cost-to-income analysis
• Return measures
• Benchmarking
• Management dashboards

2106. Islamic Banking Audit, Controls & Shari’ah Governance

• Internal controls
• Internal audit
• Shari’ah audit
• Shari’ah review
• Compliance monitoring
• Risk-based auditing
• Governance structures
• Shari’ah Supervisory Board
• Internal Shari’ah compliance function
• Audit findings
• Corrective action

AAOIFI’s current governance standards include areas such as the Shari’ah governance framework, Shari’ah compliance function, internal Shari’ah audit, SSB appointment and operations, and SSB review and reporting.

SEMESTER IV

DIGITAL ISLAMIC BANKING, STRATEGY & FINANCIAL LEADERSHIP

2201. Digital Islamic Banking & Islamic FinTech

• Digital Islamic banking
• Mobile Islamic banking
• Islamic digital wallets
• Digital financing
• Islamic FinTech business models
• Blockchain and Islamic finance
• Smart contracts
• Digital identity
• AI in Islamic finance
• Digital customer experience
• Islamic digital platforms

2202. Islamic Financial Reporting & International Standards

• Islamic financial statements
• AAOIFI financial reporting
• Comparative IFRS principles
• Recognition and measurement
• Investment accounts
• Disclosure
• Consolidation
• Financial reporting controls
• Management reporting
• International reporting considerations

The curriculum deliberately introduces both AAOIFI and mainstream international financial-reporting concepts, enabling graduates to understand Islamic-specific accounting while working in jurisdictions where IFRS or other national frameworks may apply.

2203. Islamic Banking Capital, Governance & Regulatory Management

• Capital adequacy
• Regulatory capital
• Corporate governance
• Shari’ah governance
• Board responsibilities
• Risk governance
• Regulatory reporting
• Supervisory review
• Disclosure and transparency
• Financial stability

IFSB’s revised capital-adequacy framework is designed to align Islamic financial institutions with global capital standards while accounting for Shari’ah-compliant products and their distinctive risk exposures.

2204. Islamic Banking Strategy & Financial Management

• Strategic financial management
• Business planning
• Financial forecasting
• Budget management
• Product profitability
• Cost optimisation
• Growth strategy
• Customer segmentation
• Market development
• Competitive strategy
• Institutional performance

2205. International Islamic Banking & Financial Markets

• Global Islamic banking industry
• Gulf/MENA Islamic banking
• Malaysia and Southeast Asia
• South Asian Islamic banking
• African Islamic finance
• European Islamic finance
• North American considerations
• Cross-border Islamic banking
• Correspondent banking
• International regulatory differences

European banking frameworks provide the broader prudential context for institutions operating in Europe, while Islamic financial institutions must additionally address the applicable national legal/regulatory framework and their Shari’ah governance arrangements.

2206. Strategic Islamic Banking Capstone Project

Students complete an integrated professional project.

Possible projects include:

• Designing an Islamic bank
• Developing an Islamic banking branch
• Designing an Islamic retail-finance product
• Developing an Islamic SME-financing model
• Designing an Islamic digital bank
• Developing an Islamic treasury framework
• Creating a Shari’ah governance framework
• Developing an Islamic bank financial-management plan
• Designing an Islamic banking risk-management framework
• Developing a Sukuk investment portfolio.

The diploma should be marketed as internationally benchmarked, not as a qualification issued or certified by the organisations below.

AAOIFI

The programme draws substantially on AAOIFI frameworks covering:

• Shari’ah standards
• Financial accounting
• Auditing
• Governance
• Ethics
• Shari’ah compliance
• Islamic financial reporting.

AAOIFI currently lists 54 Shari’ah standards, 26 accounting standards, 5 auditing standards, 2 codes of ethics and 7 governance standards.

IFSB

Relevant IFSB reference areas include:

• Risk management
• Corporate governance
• Conduct of business
• Shari’ah governance
• Liquidity risk
• Capital adequacy
• Supervisory review
• Disclosure
• Financial stability.

IFSB’s Core Principles for Islamic Finance Regulation provide an international benchmark for sound regulatory and supervisory practices for Islamic financial institutions.

Basel / International Banking Standards

The programme incorporates relevant mainstream banking concepts relating to:

• Capital
• Liquidity
• Risk management
• Governance
• Operational resilience
• Internal controls
• Supervisory review.

European Benchmarking

The curriculum incorporates relevant European banking principles concerning:

• Prudential regulation
• Governance
• Risk management
• Consumer protection
• Supervisory reporting
• Financial stability.

The EU banking framework is based on prudential requirements, supervision, resolution and broader financial-stability principles.

United States Benchmarking

The programme also introduces relevant U.S. banking practices in:

• Banking operations
• Financial management
• Risk management
• Internal controls
• Consumer protection
• Compliance
• Financial reporting
• Technology and operational risk.

The programme uses an applied professional-learning model.

Practical Exercises

Students may work through simulations involving:

• Islamic account opening
• Murabahah financing
• Mudarabah investment accounts
• Musharakah financing
• Ijarah financing
• Islamic credit assessment
• Islamic banking accounting
• Profit allocation
• Islamic treasury operations
• Liquidity management
• Sukuk investment
• Shari’ah compliance review
• AML/KYC
• Islamic bank financial analysis
• Risk assessment
• Internal controls
• Shari’ah audit
• Digital Islamic banking.

The assessment structure deliberately gives substantial weight to practical application, rather than relying exclusively on examinations.

Upon successful completion, graduates should be able to:

1. Explain the principles and operating philosophy of Islamic banking.
2. Apply major Islamic financial contracts to banking products.
3. Perform core Islamic banking operational processes.
4. Process Islamic deposits and financing transactions.
5. Understand Islamic banking accounting and financial reporting.
6. Analyse Islamic bank financial statements.
7. Conduct basic Islamic credit and financing assessments.
8. Identify and manage major Islamic banking risks.
9. Understand Islamic treasury and liquidity management.
10. Analyse Sukuk and Islamic investment products.
11. Apply KYC, AML/CFT and compliance principles.
12. Understand Shari’ah governance and compliance structures.
13. Conduct basic internal-control and Shari’ah-audit procedures.
14. Understand Islamic financial management and budgeting.
15. Analyse Islamic bank profitability and performance.
16. Understand digital Islamic banking and Islamic FinTech.
17. Apply international Islamic banking standards and regulatory concepts.
18. Develop professional reports and financial-management recommendations.
19. Analyse differences between Islamic and conventional banking models.
20. Develop an integrated Islamic banking or financial-management project.

The diploma prepares graduates for entry-level and junior-to-intermediate professional roles in Islamic banking and financial services, subject to local employer requirements.

Islamic Banking Operations

• Islamic Banking Operations Officer
• Islamic Banking Operations Assistant
• Branch Operations Officer
• Islamic Banking Processing Officer
• Account Administration Officer
• Islamic Financing Administration Officer
• Payments Officer
• Settlement Officer
• Reconciliation Officer

Islamic Retail & Corporate Banking

• Islamic Banking Relationship Officer
• Retail Islamic Banking Officer
• Corporate Islamic Banking Officer
• SME Islamic Finance Officer
• Islamic Financing Officer
• Customer Relationship Officer
• Islamic Banking Product Officer

Islamic Credit & Financing

• Islamic Credit Analyst
• Financing Analyst
• Islamic Underwriting Assistant
• Credit Administration Officer
• Financing Portfolio Officer
• Credit Monitoring Officer
• Recovery Officer

Accounting & Financial Management

• Islamic Bank Accounting Officer
• Finance Officer
• Financial Reporting Assistant
• Management Accounting Assistant
• Financial Analyst
• Budget Officer
• Financial Planning Assistant
• Investment Accounting Officer

Treasury & Investment

• Islamic Treasury Officer
• Liquidity Management Assistant
• Treasury Operations Officer
• Sukuk Investment Analyst
• Islamic Investment Officer
• Portfolio Operations Assistant
• Investment Research Assistant

Risk & Compliance

• Islamic Banking Risk Analyst
• Compliance Officer
• Shari’ah Compliance Assistant
• AML/KYC Officer
• Financial Crime Compliance Analyst
• Operational Risk Officer
• Internal Controls Officer
• Risk Reporting Officer

Shari’ah Governance & Audit

• Shari’ah Compliance Officer
• Shari’ah Review Assistant
• Shari’ah Audit Assistant
• Internal Audit Assistant
• Governance Officer
• Shari’ah Governance Coordinator

Note: roles requiring formal Shari’ah scholar/adviser credentials or specific professional licences would normally require additional specialist qualifications and experience.

The diploma can be adapted to major Islamic-finance markets.

Gulf & MENA

Emphasis on:

• Islamic commercial banking
• Sukuk
• Islamic treasury
• Shari’ah governance
• Investment banking
• Wealth management.

Malaysia & Indonesia

Emphasis on:

• Islamic retail banking
• Islamic capital markets
• Islamic FinTech
• Sukuk
• Shari’ah governance
• Digital Islamic finance.

Pakistan & Bangladesh

Emphasis on:

• Islamic retail banking
• SME finance
• Islamic deposits
• Murabahah/Musharakah/Mudarabah
• Shari’ah compliance
• Banking operations.

Africa

Emphasis on:

• Islamic financial inclusion
• Islamic microfinance
• SME financing
• Digital Islamic banking
• Sukuk
• Islamic banking windows
• Mobile and agency banking.

Europe & North America

Emphasis on:

• Shari’ah-compliant financial products within conventional regulatory environments
• Islamic investment
• Asset management
• FinTech
• Ethical finance
• Risk and compliance
• Cross-border Islamic financial services.

Suggested IBSF pathway

Certificate in Islamic Banking & Finance
↓
Diploma in Islamic Banking Operations & Financial Management
↓
Bachelor’s Degree in Islamic Banking & Finance
↓
Master’s Degree in Islamic Finance / Islamic Banking & Financial Management
↓
MBA / Executive MBA / Executive Master’s

IBSF INTERNATIONAL DIPLOMA IN ISLAMIC BANKING OPERATIONS & FINANCIAL MANAGEMENT

Duration: 2 Years
Structure: 4 Semesters
Delivery: On-Campus | Online | Hybrid | In-House
Level: Professional Diploma
Language: English
Target Markets: Global | MENA/Gulf | Malaysia & Indonesia | Pakistan & Bangladesh | Africa | Europe | North America

The IBSF International Diploma in Islamic Banking Operations & Financial Management is a two-year professional programme designed to develop specialists capable of working across the operational, financial, compliance and management functions of Islamic financial institutions.