Introduction:

Dual banking systems represent a structural framework where conventional and Islamic banking models operate side by side under defined regulatory oversight. This coexistence requires harmonized governance mechanisms, risk management models, and compliance structures to ensure both systems align with institutional objectives and legal requirements. This training program introduces advanced institutional frameworks, supervisory methodologies, and governance models that regulate dual banking environments. It emphasizes structured methods for balancing financial innovation, compliance enforcement, and stakeholder trust across both systems.

Program Objectives:

By the end of this program, participants will be able to:

• Identify institutional frameworks that define the coexistence of conventional and Islamic banking systems.

• Evaluate governance and compliance models applicable to dual banking environments.

• Classify risk structures and oversight methodologies unique to dual financial operations.

• Analyze supervisory mechanisms for auditing, reporting, and transparency.

• Assess regulatory coordination structures that balance operational efficiency and institutional accountability.

Targeted Audience:

• Central bank officials and regulators.

• Compliance and risk management professionals.

• Executives in dual banking environments.

• Legal and policy advisors in financial institutions.

• Auditors and governance specialists in the banking sector.

Program Outline:

Unit 1:

Foundations of Dual Banking Systems:

• Institutional principles governing conventional and Islamic banking coexistence.

• Legal frameworks enabling dual systems within financial markets.

• Structural differences in operational models across both systems.

• Comparative analysis of product development in conventional vs Islamic banking.

• Institutional challenges in harmonizing dual banking practices.

Unit 2:

Governance and Regulatory Frameworks:

• Core governance models applicable to dual banking operations.

• Regulatory standards defining Islamic banking (AAOIFI, IFSB) and conventional banking (Basel frameworks).

• Supervisory roles of central banks and financial authorities in dual systems.

• Compliance structures for ensuring accountability in both systems.

• Institutional mechanisms for resolving governance conflicts in dual environments.

Unit 3:

Risk Management Structures in Dual Banking:

• Institutional frameworks for credit, liquidity, and market risk in dual systems.

• Shari’ah compliant risk models vs conventional risk frameworks.

• Structures for operational risk management across both banking streams.

• Oversight on systemic risks emerging from dual financial operations.

• Techniques for integrating risk reporting within regulatory compliance requirements.

Unit 4:

Transparency, Reporting, and Audit Mechanisms:

• Standards for dual banking financial reporting and disclosures.

• Frameworks for Shari’ah audit and governance in Islamic banking.

• Role of internal and external audit in dual banking systems.

• Regulatory compliance documentation and transparency requirements.

• Oversight on cross system accountability and reporting structures.

Unit 5:

Regulatory Coordination and Institutional Oversight in Dual Banking Systems:

• Structures of coordination between central banks and Shari’ah supervisory authorities.

• Mechanisms for resolving regulatory conflicts between conventional and Islamic banking frameworks.

• Oversight models for ensuring transparency in dual financial reporting.

• Institutional processes for licensing, compliance monitoring, and enforcement in dual systems.

• Key steps for integrating auditing, inspection, and accountability functions across both banking streams.