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Two Days Specialized Training Workshop on

Risk & Deposit Management of Interest-Free Banking and Finance

February 21 – 22, 2024 at Addis Ababa, Ethiopia

Two Days Specialized Training Workshop on

Risk & Deposit Management of Interest-Free Banking and Finance

February 21 – 22, 2024 at Addis Ababa, Ethiopia

Event Summary

About AlHuda Center of Islamic Banking & Economics

AlHuda Center of Islamic Banking and Economics (CIBE) is a well-established name in Islamic Banking and Finance with state-of-the-art advisory, consultancy, education, training, research and product development services. AlHuda CIBE has organized a number of international customized training workshops on Islamic Banking and Finance to build the capacity of young Islamic finance professionals. As a matter of fact, that Pakistan keeps enough potential for the growth of Islamic Banking and Finance, AlHuda CIBE is going to organize a Training workshop on Islamic Banking for capacity building in Islamic Banking Professionals.

About Interest-Free Banking and Finance:

Interest-Free Banking and Finance has experienced notable growth and evolution globally, with expanding reach beyond traditional Islamic finance hubs. Regulatory frameworks have been refined to provide clearer guidance, fostering a supportive environment for Islamic financial institutions. Fintech integration is on the rise, enhancing customer experiences and operational efficiency. Sustainability and ethical finance have gained prominence, with institutions focusing on environmentally responsible initiatives and social impact. Financial inclusion remains a key objective, particularly in regions with large Muslim populations. Ongoing innovation in product offerings, cross-border collaboration, and digital banking platforms reflect the industry's commitment to adaptability and accessibility. Education initiatives continue to raise awareness about the principles and benefits of interest-free banking. In response to economic challenges, interest-free banking institutions are emphasizing financial resilience and support for customers facing uncertainties, contributing to the sector's continued prominence in the global financial landscape.

About Ethiopia:

The Federal Democratic Republic of Ethiopia is located in the north-eastern part of Africa commonly known as the Horn of Africa. It is strategically proximate to the Middle East and Europe, together with its easy access to the major ports of the region, enhances its international trade. It is bordered by Sudan in the west, Somalia and Djibouti in the east, Eritrea in the north and Kenya in the south. The country covers 1,112,000 square kilometres (472,000 sq. miles) making it roughly as large as France and Spain combined and is five times the size of the UK.

From the north and running down the center are the Abyssinian highlands. To the west of the chain the land drops to the grasslands of Sudan, to the east to the deserts of the Afar. South of Addis Ababa, the land is dominated by the Rift Valley Lakes.

Ethiopia’s central plateau varies in height between 2,000 and 3,000 meters. In the north and center of the country there are some 25 mountains whose peaks rise over 4,000 meters (13,200ft), the highest being Ras Dashen at 4,543 meters (14,538ft).

Training Contents

Two Days Specialized Training Workshop on Risk & Deposit Management of Interest-Free Banking and Finance

Introduction to Risk Management in Interest-Free Finance

  • Overview of risk types in Interest-Free banking
  • Sharia-compliant risk management principles
  • Regulatory framework and compliance

Sharia-Compliant Risk Identification and Assessment

  • Developing risk matrices with Interest-Free finance considerations
  • Integrating Maqasid al-Sharia (Objectives of Sharia) in risk assessment

Risk Mitigation Strategies

  • Utilizing Interest-Free financial contracts for risk diversification
  • Takaful (Interest-Free insurance) as a risk mitigation tool
  • The role of Wakalah and Khiyar in minimizing contractual risks

Stress Testing in Interest-Free Finance

  • Importance of stress testing in risk management
  • Designing and conducting stress tests in compliance with Sharia principles
  • Interpreting stress test results and strategic planning

Day 2 - Essentials of Deposit Mobilization

  • Types of Interest-Free deposits
  • Strategies for attracting and retaining deposits
  • Regulatory aspects of deposit mobilization

Profit and Loss Sharing Mechanisms

  • Mudarabah and Musharakah contracts in deposit products
  • Profit distribution models
  • Managing returns and risks in PLS (Profit and Loss Sharing) accounts

Liquidity Management

  • Liquidity risk in Interest-Free banking
  • Liquidity management tools and techniques
  • Case studies on effective liquidity management

Customer Relationship Management in Deposit Products

  • Building customer trust in Interest-Free banking
  • Designing customer-centric deposit products
  • Marketing and communication strategies for deposit products
Contact Info
contact us
AlHuda CIBE FZ LLE - U.A.E (Advisory, Consulting & Capacity Building)
P.O. Box 120867, Dubai, United Arab Emirates.