IBSL Diploma in Islamic Banking Exam study guide
IBSL Diploma in Islamic Banking Exam · Work through your exam, one topic at a time.
The Diploma in Islamic Banking (course code DP15) is a Diploma-level professional programme offered by the Institute of Bankers of Sri Lanka (IBSL), the Colombo-based professional body first established in 1964 as the Bankers' Training Institute (Ceylon) and re-incorporated in 1979 under Act No. The programme is delivered in English, carries a listed duration of 108 hours and a listed course fee of ₨ 50,000.00, and the next advertised commencement is 26 July 2026 (Sunday, 8.30 am to 12.30 pm). The IBSL Diploma in Islamic Banking Exam study guide has 12 sections and about 3,581 words.
01Basic Principles, Values and Ethical Dimensions of Islamic Banking & Finance
This domain tests whether you can state the prohibitions and the positive values that define Islamic banking, trace the industry's institutional history, and name the bodies that set standards today. Riba - a predetermined increase on a loan (Quran 2:275–279; 3:130).
328 words, about 2 min02Sharia Framework for Islamic Banking
This domain tests your command of the sources and secondary tools of usul al-fiqh, and your ability to test a contract against the conditions of Islamic commercial law. Quran - the primary text; roughly 500 verses carry legal content.
321 words, about 2 min03Islamic Banking Products and Services
This domain tests your ability to map products to contract types, separate debt-based from equity- and asset-based structures, and spot clauses that turn a valid structure into riba. Current accounts (qard hasan or wadiah), savings accounts (wadiah with discretionary hibah, or unrestricted mudaraba), term deposits (restricted or unrestricted mudaraba), and sukuk issued for funding.
305 words, about 2 min04Takaful (Islamic Insurance)
This domain tests why takaful is not conventional insurance relabelled: its rationale, its fund architecture, and the rules for distributing surplus. Participants pay contributions into a participants' fund as tabarru' (donation), not as a premium buying a guaranteed indemnity.
308 words, about 2 min05Sukuk Market
This domain tests whether you can define sukuk correctly, distinguish structures, and explain why tradability and asset-backing depend on the underlying contract. Sukuk are certificates representing undivided ownership in tangible assets, usufruct or projects - AAOIFI Sharia Standard 17.
327 words, about 2 min06Islamic Funds and Wealth Management
This domain tests screening rules, purification arithmetic, and the governance of discretionary portfolios and collective investment schemes. Business activity - exclude alcohol, tobacco, gambling, conventional finance, pork, pornography, weapons.
250 words, about 1 min07Corporate Governance for Islamic Banks and Financial Institutions
This domain tests the extra governance layer an Islamic bank carries: the Sharia Supervisory Board, and the fiduciary duty owed to investment account holders who hold no voting rights. IFSB-3 (corporate governance for institutions offering Islamic financial services), IFSB-10 (Sharia governance), and AAOIFI Governance Standards GSIFI 1–8, layered over the OECD-style principles applied by the regulator.
283 words, about 1 min08Accounting for Islamic Banks
This domain tests AAOIFI financial accounting standards, the profit distribution waterfall, and the treatment of investment accounts. FAS 2 murabaha, FAS 3 mudaraba, FAS 4 musharaka, FAS 5 disclosure of profit allocation bases, FAS 6 equity of investment account holders, FAS 7 salam, FAS 8 ijarah, FAS 9 zakat, FAS 10 istisna, FAS 14 investment accounts, FAS 15 provisions and reserves, FAS 28 revised murabaha.
297 words, about 1 min09Credit and Risk Management in an Islamic Bank
This domain tests the risk taxonomy unique to Islamic banking and the mitigation tools permitted under Sharia. Credit risk - murabaha and ijarah receivables, salam and istisna counterparty exposure.
321 words, about 2 min10Regulatory Supervision
This domain tests how prudential regulation adapts to Islamic banking: capital, liquidity, licensing models and supervisory review. IFSB-1 (risk management), IFSB-2 and IFSB-15 (capital adequacy), IFSB-3 (corporate governance), IFSB-10 (Sharia governance), IFSB-12 (liquidity risk management), IFSB-16 (supervisory review process), IFSB-17 (stress testing).
295 words, about 1 min11Sharia Governance and Audit
This domain tests the machinery that makes compliance verifiable: the Sharia Supervisory Board, ex-ante and ex-post review, sharia audit and breach remediation. SSB - issues fatwas and resolutions, approves products and contracts, and reports annually.
260 words, about 1 min12Special Topics: Product Development, Islamic Branding, Micro & SME, Social Finance
This domain tests applied judgment: how new products are approved, how Islamic identity is marketed honestly, and how micro, SME and social finance are structured. Stages: idea, business case, Sharia review and approval, legal documentation, systems and accounting, pilot, launch, post-launch review.
286 words, about 1 min