Case Study 2.1 Musharaka with Losses(2*5marks each=10) Same assumptions as in Section 2 but now assume: Sale proceeds = US$9,200,000 Expenses = US$100,000 a.. Solve the total return to the bank. b. Apply the best approach to find the total return to the investor. CASE 3: IJARA: OPERATING LEASE CONTRACT (5 marks) A bank customer requests financing for five air conditioning units (A/Cs) on a three-year lease from the bank. The bank buys the assets and leases them for three years. Financial details US$ Cost of A/Cs 10,000 Five-year life annual depreciation 2000 p.a. Insurance (Takaful) 600 p.a. Profit required by the bank Year 1 900 Year 2 700 Year 3 500 3.Use proper method to find the yearly Ijara rental the bank will charge in order to cover the costs and to make the required profit? CASE 4: Hypothetical Case Study on Housing Finance Through Diminishing Musharakah (Partnership by Ownership) (10 marks) Cost of house: BD 2. O Million. Bank financing: 80% Tenure: 10 years Rental (return rate equivalent to) : 8% p.a. (of investment) Purpose: home purchase from the market. Apply the best approach to calculate the monthly payment plan for home purchase 10 months. PART II CRITICAL THINKING SKILLS (4*5marks each=20) 1. For years Bahrain has been pioneering innovation in Islamic finance. Earlier this year the Central Bank of Bahrain (CBB) adopted a new program that facilitates a regulatory sandbox for fintech start-ups, enabling them to have access to work with banking tools and solutions. Just last month, the Bahrain Economic Development Board (EDB) and Singapore's Fintech Consortium announced the launch of Bahrain Fintech Bay (BFB), the largest dedicated fintech hub in the Middle East and Africa. Read understand and interpret the role of Fintech in Islamic Finance and answer the following questions. a. Appraise the role of Fintech in economic development of Bahrain. b. Analyze the role of Fintech in achieving SME development in Bahrain. c. Evaluate the programs undertaken by Fintech. d. Critically analyze the difference between Auto Ijarah and conventional lease with suitable examples Case Study 2.1 Musharaka with Losses(2*5marks each=10) Same assumptions as in Section 2 but now assume: Sale proceeds = US$9,200,000 Expenses = US$100,000 a.. Solve the total return to the bank. b. Apply the best approach to find the total return to the investor. CASE 3: IJARA: OPERATING LEASE CONTRACT (5 marks) A bank customer requests financing for five air conditioning units (A/Cs) on a three-year lease from the bank. The bank buys the assets and leases them for three years. Financial details US$ Cost of A/Cs 10,000 Five-year life annual depreciation 2000 p.a. Insurance (Takaful) 600 p.a. Profit required by the bank Year 1 900 Year 2 700 Year 3 500 3.Use proper method to find the yearly Ijara rental the bank will charge in order to cover the costs and to make the required profit? CASE 4: Hypothetical Case Study on Housing Finance Through Diminishing Musharakah (Partnership by Ownership) (10 marks) Cost of house: BD 2. O Million. Bank financing: 80% Tenure: 10 years Rental (return rate equivalent to) : 8% p.a. (of investment) Purpose: home purchase from the market. Apply the best approach to calculate the monthly payment plan for home purchase 10 months. PART II CRITICAL THINKING SKILLS (4*5marks each=20) 1. For years Bahrain has been pioneering innovation in Islamic finance. Earlier this year the Central Bank of Bahrain (CBB) adopted a new program that facilitates a regulatory sandbox for fintech start-ups, enabling them to have access to work with banking tools and solutions. Just last month, the Bahrain Economic Development Board (EDB) and Singapore's Fintech Consortium announced the launch of Bahrain Fintech Bay (BFB), the largest dedicated fintech hub in the Middle East and Africa. Read understand and interpret the role of Fintech in Islamic Finance and answer the following questions. a. Appraise the role of Fintech in economic development of Bahrain. b. Analyze the role of Fintech in achieving SME development in Bahrain. c. Evaluate the programs undertaken by Fintech. d. Critically analyze the difference between Auto Ijarah and conventional lease with suitable examples
