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BRIAN KETTELL, the Course Director, worked at the Central Bank of Bahrain for several years and has extensive experience in Islamic banking.
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He has published 16 books on banking and financial markets and over 20 case studies on Islamic banking and finance.

Module 5

Mudaraba: Tier-One and Tier-Two

This module provides details of the Mudaraba contract highlighting the mechanics of its use, its major applications and the risks for Islamic banks using this technique.

What is Mudaraba?

  • Mudaraba terminology
  • The Two Tier Mudaraba system:
    •    Tier One Mudaraba
    •    Tier Two Mudaraba
       
  •  What are the similarities and differences between the Two Tiers?
  • Applications of Mudaraba
  • Characteristics associated with Tier One Mudaraba
  • Unrestricted and Restricted Mudaraba
  • Duties assumed in a Fiduciary Mudaraba
  • Characteristics associated with Tier Two Mudaraba
  • Implementation of a Tier Two Mudaraba
  • Mudaraba case study
  • What is the difference between Tier Two Mudaraba and conventional bank lending?
  • How does Mudaraba compare with Musharaka?
  • What are the risks for Islamic banks providing Mudaraba facilities?
  • Mudaraba and the allocation of profits.