Skip to content
Erudite AfricaCenter of Excellence

← Erudite Africa Center of ExcellenceBank and MFIInterest Free Banking ProgramAdvanced · Executive Certificate

Interest Free Banking Financing: Advanced

Approve, grade, monitor and resolve IFB financings, and keep the portfolio within the bank's limits, the regulator's and Sharia'h

For decision makers: sit on an IFB financing committee, grade and monitor risk, work out problem financings without adding profit for time, write off on evidence and manage the portfolio, following one coffee exporter from approval to workout.

Start the course

0 of 7 modules completed

What you will be able to do

  • Decide IFB financings on a committee within delegated limits, with a valid quorum, declared conflicts and the right route for appeals, exceptions and related-party transactions
  • Grade customers and connected groups, apply the 30-day significant increase presumption, and test requests against large and related-party exposure limits
  • Run physical, financial, legal and system follow-up and act on early warning signals before default
  • Work out and reschedule problem financings within Sharia'h: no increase for time, damage charges to charity, new financing only as a genuine SAC-approved transaction
  • Write off on evidence, recover after write-off, classify, place NPFs on non-accrual and compute expected credit loss on and off the balance sheet
  • Apply SAC rulings, purify non-compliant income, and approve and report exceptions without ever excepting Sharia'h or regulatory limits
For
Branch and district managers, appraisal and business directors, financing committee members, and risk, compliance and Sharia'h audit staff in Ethiopian banks with interest free banking windows or branches, who have passed Level 2 (Practitioner) or have equivalent IFB financing experience.
Study time
About 7 hours online, in 7 modules (3 days in the classroom version)
Each module
Short lessons, animated visuals, Ethiopian examples, decisions to make, NBE rules and worked calculations, then a quiz
Assessment
A 20-question final exam; pass mark 70%
Certificate
Erudite Africa Center of Excellence Executive Certificate
Access
Module 1 free for registered users; the full course, exam and certificate for subscribers

The 7 modules

  1. Module 01Free previewThe financing approval systemDecide IFB financings inside delegated limits, with a valid quorum, declared conflicts and a Financing Approval Form you have actually challenged.5 lessons · 65 min · quiz
  2. Module 02Risk grading and exposure limitsGrade customers and connected groups on a consistent grid, spot a significant increase in credit risk, and test every request against large and related-party exposure limits.5 lessons · 55 min · quiz
  3. Module 03Follow-up and early warningMonitor performing financings with physical, financial, legal and system follow-up, read early warning signals in time, and collect on the due date.5 lessons · 55 min · quiz
  4. Module 04Problem finance managementMove a deteriorating financing to workout on time, negotiate a realistic plan, and reschedule or restructure it without ever adding profit for extra time.5 lessons · 65 min · quiz
  5. Module 05Write-off and recoveryWrite off only on evidence, keep the register, and keep recovering after write-off, including reinstatement, waivers, guarantees and debt transfers that the SAC has ruled on.5 lessons · 55 min · quiz
  6. Module 06Portfolio management and provisioningManage the IFB portfolio as a whole: concentration, classification and non-accrual, expected credit loss on and off the balance sheet, and reports that lead to action.5 lessons · 50 min · quiz
  7. Module 07Sharia'h governance, exceptions and accountabilityApply SAC rulings in every financing decision, learn from Sharia'h audit findings, purify non-compliant income, and approve and report exceptions without ever excepting Sharia'h.5 lessons · 45 min · quiz
  8. Officer simulationA week as IFB district financing manager at Bank A, Hawassa districtWork as district ifb financing manager: 10 real-life items, decisions with consequences and a hand-over note. Pass with 70% to qualify for the certificate.
  9. Final examFinal exam and certificate20 applied questions across all 7 modules. Pass with 70% to download your certificate.

Capstone project

Defend the Yirgalem case before a mock financing committee

In groups, take the Level 3 group case, Yirgalem Coffee Export PLC's Birr 25 million Murabaha pre-shipment financing, to a mock financing committee of trainers. Present and defend the structure, the risk grade, the conditions, the Sharia'h fit and the exposure and related-party limits at approval, then the workout plan when the shipment is delayed three months, using the IFB portfolio and workout toolkit.

  1. 1Download ifb-portfolio-workout-toolkit.xlsx and, on the Grading sheet, grade Yirgalem at approval and again after the shipment delay, explaining each parameter score
  2. 2On the Exposure sheet, add up the Yirgalem group (Yirgalem Coffee Export and Yirgalem Logistics) on and off the balance sheet, test it against Bank A's total capital, and identify the related-party route that applies because of the 2.5% shareholder
  3. 3Set out the approval structure: the Murabaha steps and documents in order, the conditions precedent to disbursement, the approval level and who must leave the decision if a conflict exists
  4. 4On the Early warning sheet, enter the six-month account history and write the follow-up findings with dated actions
  5. 5On the Workout sheet, reschedule the Birr 26.5 million sale price to month nine with no added profit, add the partial payment from the voluntary sale of collateral, and list the conditions that protect the bank
  6. 6On the Provisioning sheet, show Yirgalem's stage and ECL before and after the delay and its effect on the district summary; complete the Write-off evidence sheet for the two comparison files
  7. 7Present to the mock committee in 15 minutes and answer its questions on structure, grading, conditions, Sharia'h fit and exposure limits

What you hand in

  • Completed toolkit: grading, exposure and related-party check, early warning tracker, workout plan, write-off evidence checklist and provisioning summary for the Yirgalem case
  • A two-page committee paper recommending the approval structure and conditions, and the workout plan with its Sharia'h check
  • A 15-minute group presentation to the mock financing committee, with the answers to the committee's questions recorded

Templates and tools

  • IFB portfolio and workout toolkit

    A customer risk grading sheet, a large and related-party exposure checker against total capital, an early warning tracker, a workout and restructuring plan with no added profit for extension, a write-off evidence checklist and a portfolio classification and provisioning summary, filled in for Yirgalem Coffee Export PLC.

How to earn the Executive Certificate

  • Have passed Level 2 (Practitioner) of this course, or have equivalent IFB financing experience
  • Complete all seven modules and their quizzes, and pass the workplace simulation with 70% or more
  • Pass the final exam with 75% or more, the Level 3 pass mark
  • Blended and classroom cohorts: present the capstone group case to a mock financing committee of Erudite facilitators and defend the structure, grading, conditions, Sharia'h fit, exposure limits and workout plan
  • Classroom delivery: attend all three training days in full

Built on

  • Erudite Africa training outline: Interest Free Banking Financing, Level 3 Advanced (October 2026)
  • A typical Ethiopian bank's IFB financing business procedure (May 2025), unnamed: approval system, grading, follow-up, problem finance, write-off, portfolio management and exceptions
  • NBE Bank Corporate Governance Directive No. SBB/91/2024 (influential shareholder at 2%) and Risk Based Capital Adequacy Requirement for Banks Directive No. SBB/95/2025, issued under Banking Business Proclamation No. 1360/2025
  • NBE directives on interest free banking, large exposures, related parties, and asset classification and provisioning, in their current versions
  • AAOIFI Sharia'h Standards, including Sharia'h Standard No. 8 (Murabaha); the host bank's Sharia'h Advisory Committee rulings take precedence
  • IFRS 9 Financial Instruments: expected credit loss staging

Examples and companies are fictional. Bank practices are shown as typical Ethiopian practice, not as any one bank's policy. Always apply your own institution's approved policy and the current NBE directives.