Participative Finance
Category: Corporate Finance, Participative finance (If we have it), Banking
Duration: 5 Days
Related courses : choosing banking and negotiation, working capital management, cash management
Synopsis
This five-day training program explores the principles and practices of participative finance, also known as ethical or Islamic finance, which operates according to specific principles that align financial activities with ethical standards. Participative finance is gaining global recognition due to its focus on risk-sharing, fairness, and avoiding speculation and interest (riba). This course is designed to provide a comprehensive understanding of the models, products, and frameworks used in participative finance, offering participants practical insights into its application in modern financial systems.
Learning Objectives
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Understand the core principles and ethical foundations of participative finance.
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Learn about the main models of participative finance, such as mudarabah, murabaha, musharakah, and ijara.
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Explore the application of participative finance in banking, investment, and insurance (takaful).
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Analyze the regulatory and legal frameworks governing participative finance.
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Gain insights into the global market for participative finance and its growth.
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Apply participative finance principles to real-world business and financial decision-making.
Training Program
Day 01
Introduction to Participative Finance
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Principles of Participative Finance
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Core tenets: risk-sharing, ethical investment, prohibition of interest (riba), and speculative transactions (gharar).
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The moral and ethical foundation of participative finance.
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Historical Evolution and Modern Application
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The origins of participative finance in Islamic finance and its development.
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Current trends and market size for participative financial products.
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Key Concepts and Terminology
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Introduction to terms like halal, haram, and sharia-compliant products.
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Case Study:
Explore a financial institution offering participative finance products and analyze their key principles and challenges.
Day 02
Financial Products in Participative Finance
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Mudarabah (Profit-Sharing)
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Definition and structure of profit-sharing agreements.
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Roles and responsibilities of investors and entrepreneurs in mudarabah contracts.
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Murabaha (Cost-Plus Financing)
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Structure and application of cost-plus sales agreements.
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How murabaha is used in asset financing and trade.
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Musharakah (Partnership Financing)
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Equity partnership models and how profits and losses are shared in musharakah contracts.
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Applications in real estate and joint ventures.
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Practical Exercise:
Structure a financial product using murabaha and analyze its compliance with participative finance principles.
Day 03
Islamic Banking and Investment
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Participative Finance in Banking
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The structure of Islamic banks and how they differ from conventional banks.
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Common products offered by Islamic banks, such as mudarabah savings accounts and musharakah financing.
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Sukuk (Islamic Bonds)
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Understanding sukuk as an alternative to conventional bonds.
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How sukuk is structured and its role in the global finance market.
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Islamic Investment Funds
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Sharia-compliant investment products and ethical investing principles.
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Practical Case Study:
Evaluate the financial performance and structure of a sukuk issuance compared to a conventional bond.
Day 04
Takaful (Islamic Insurance) and Regulatory Frameworks
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Takaful: Cooperative Insurance Model
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The structure of takaful and how it differs from conventional insurance.
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Understanding risk-sharing in takaful and its applications.
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Regulatory Frameworks in Participative Finance
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Overview of key regulatory bodies governing participative finance (e.g., AAOIFI, IFSB).
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How local and international regulations shape the development of participative financial institutions.
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Practical Workshop:
Create a business model for a takaful company, focusing on compliance with ethical principles and regulatory requirements.
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Day 05
Challenges and Opportunities in Participative Finance
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Global Trends in Participative Finance
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Growth of participative finance in emerging markets and developed economies.
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Challenges in scaling participative finance globally: liquidity, competition, and regulatory hurdles.
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Sustainability and Ethical Finance
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How participative finance aligns with sustainable and impact investing.
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Opportunities for ethical finance in the context of environmental, social, and governance (ESG) criteria.
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Final Case Study:
Develop a participative finance strategy for a company, including financing products, investment opportunities, and ethical considerations.
Key Points
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Numerous practical examples illustrating the different studied concepts
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Practical cases to draw parallels with the concepts learned
Who is this training for ?
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Finance and banking professionals interested in ethical and Islamic finance.
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Corporate leaders looking to incorporate participative finance into their business models.
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Investment professionals seeking to diversify portfolios with sharia-compliant products.
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Legal and compliance professionals working in the field of financial regulation.
Prerequisities
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Basic understanding of financial markets and products is recommended.
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No prior experience in participative finance is required.
Teaching Methods
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Training structured around skill transfer
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Acquisition of operational skills through practice and experimentation
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Collaborative learning during synchronous sessions
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Multi-stage learning path to allow engagement, learning, and transfer
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Training promoting participant engagement for better anchoring of lessons
Satisfaction and Evaluation
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Skill evaluation will be conducted throughout the training by the participant (self-evaluation) and/or the trainer according to the training methods.
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Online training evaluation on your participant space:
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Immediate evaluation at the end of the training to measure your satisfaction and perception of skill improvement against training objectives. With your agreement, your overall rating and comments will be published on our site via Verified Reviews.
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Post-training evaluation 40 days later to validate the transfer of your acquired skills in the workplace
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Attendance tracking and issuance of an individual training certificate or a certificate of completion
LONDON
128 City Road, EC1V 2NX London
PARIS
38 Rue Boulard, 75014, Paris