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A M E R I C A N U N I V E R S I T Y I N C A I R O
S c h o o l o f B u s i n e s s
D e p a r t m e n t o f M a n a g e m e n t

Instructor name: Mr. Hamed Hassouna

Office hours: By appointment
Telephone number: 2614 9303
E-mail address: h.hassouna@aucegypt.edu
TAs email addresses: nourhanelshenawy@aucegypt.edu
Course Prerequisites: FINC 303
Class Schedule: Sundays 06:00-08:30 pm

Vision of the School of Business

AUC School of Business aims to be the leading knowledge hub with Arab region relevance
and global influence.

Mission of the School of Business

AUC School of Business aims to develop entrepreneurial and responsible global leaders and
professionals.

Mission of the Department of Management

Our mission is to develop entrepreneurial and responsible business leaders and professionals
who are dedicated to the betterment of the society by providing a high quality business
education to top caliber students from all segments of Egyptian society as well as from other
countries while focusing on continuous improvement and commitment to excellence in
learning, intellectual contributions and service.
In support of this mission the department:
 Provides a high quality contemporary – style business education that blends a global
perspective with national cultures and is relevant to the business needs of Egypt and
the region.
 Provides programs that encourage the development of an entrepreneurial spirit that
emphasizes creativity, innovation, individual initiative and teamwork.
 Provides a learning environment that fosters faculty/student communication and
promotes lifelong learning and career development.
 Encourages faculty development activities that improve teaching, maintain
competence and keep faculty current with ideas and concepts in their fields.
 Seeks to develop a portfolio of intellectual contributions to learning and pedagogy, to
practice, and to the theory and knowledge base of the disciplines.
 Encourages the establishment of close partnerships with the business community,
through consultancies and service that enhance the intellectual and economic quality
of Egypt, while enriching the learning process.

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Core Values
̵ Belonging - A tangible sense of pride in one school stemming from a common, all-
encompassing purpose.
̵ Ambition - The desire to stretch the horizon by charting new and untapped
opportunities.
̵ Integrity and Good Citizenship - Personal veracity and ethical professional behavior
accompanied by a sense of responsibility to give back to the community.
̵ Excellence - An urge for continuous advancement, improvement and intellectual
growth.
Course Overview and Learning Objectives:
Learning Objectives
A student who has successfully completed the course is expected to be able to understand the
important role banks play in the financial world, the main functions of a commercial bank,
the risks that banks are exposed to and ways to manage them.
Students should also be able to master concepts related to bank management such as
liquidity, reserve requirements, cost of capital…etc.

Course Coverage:
The course should cover:
- Emphasizing banks’ important role in the economy, through discussing the different
production factors and how money satisfies measuring value of each factor as well as
payment for each factor
- Introducing banks sources and uses of funds, analyzing each type of sources and uses
of banks funds through introducing banks financial statements and ways to assess
banks performance
- Introducing important concepts of “Tenor Match”, “ Currency Match” as well as
“Risk & Returns”
- Introducing risks assumed by banks for each type of assets class of the bank assets
with focus on Loans & Advances to clients, examining the different lending rationales
[facilities types & terms] adopted by the banks while lending to different clients
- Analyzing creditworthiness of business firms

Competency Coverage
In addition to the specific objectives of the course, the material and activities have been
selected to aid students in their progress toward developing the following competencies:

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Coverage of Learning Goals
Undergraduate Learning Goals (BBA Degree)
Level of
 Learning goal Coverage*
̵ Communication: Each student will demonstrate effective
written and oral communication skills.
4
̵ Career Readiness: Each student will be able to apply
his/her academic education into a professional career.
4
̵ Responsible Citizens: Each student will demonstrate
knowledge of the purpose of business in society and act on
their personal values with responsibility.
3
̵ Global Awareness: Each student will be able to distinguish
global differences in the business community with a special
focus on the unique Egyptian environment.
3
̵ Entrepreneurship: Each student will be able to identify an
entrepreneurial business opportunity and will be aware of
the importance of entrepreneurship for economic
development and the development of a business plan.
2
- Integrating Business Disciplines: Each student will be
able to describe the functional areas of business as well as
the internal and external environments and be able to
integrate this knowledge when assessing business
situations. 3
*
 1= not at all covered
 2= covered to a limited extent
 3= covered to some extent
 4=covered to a large extent

Teaching Methodology:
The course will include lectures, case discussions, assignments and group presentations.
Lectures will emphasize & discuss the theory as well as international banking standards &
norms, with numerical illustrations.
Assignments will focus on exercises and case studies that should be submitted and discussed
afterwards in class.

Course Guidelines:
1. Disciplined class attendance, since course heavily depends upon practical concepts &
issues that will be discussed during class sessions: The extent to which you will learn
in this class depends on your own initiative and your taking responsibility for your
learning.

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 2. Class discussions participations [intelligently]: It is very important that you read
assigned material before class, if any. Being properly prepared for class will
maximize your benefit from the exercises and enhance your class participation grade
knowing that class participation carries a high weight in the course grade. Positive
participation grades are earned through active contribution to class discussion and not
simply by attending class.
3. Timely handover of deliverables / assignments
4. Keep track of deadlines
5. Communicate with the professor and the teaching assistants via emails

Other Policies that will be Implemented in the Class

1. Make up exams are not allowed. The instructor will only consider make ups
for the final exam and under very strict conditions.
2. University rules have to be observed, particularly with respect to attendance
and cheating.
3. Students who copy assignments will lose the assignments grades.
4. Students who submit assignments late will be subject to penalties.

Course Navigation
All class lectures, material and assignments will be posted on Blackboard.
The instructor and the TA will be responding to your questions via email. It is required that
students use their official AUC email for communication.
All announcements will be sent via email.
All students’ work should be submitted onto Blackboard.

Recommended Reading Materials

1. Elements of Banking – Made Simple, Geoffery Whithead & Julia Hoyle.
2. The Economics of Money, Banking & Financial Markets - 7th edition –
Frederic S. Mishkin.
3. AUC - Money & Banking Course Materials
Other related material will be assigned by the instructor throughout the course

Grading Scheme

Mid Term 30% A = 93%

Final Exam (Comprehensive) 30% A- = 90%
Term Paper and Presentation 15% B+ = 87%
Assignments & Case Studies 15% B = 84%
Class performance / Participation 10% B- = 80%
Total 100% C+ = 77%
C = 74%
C- = 70%
D+ = 65%
D = 60%
F = Less than 60%

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Term Paper
The term paper aims at improving the understanding and comprehension of the course.
The papers should be presented in groups.
Instructor’s approval must be secured for both the composition of the groups and the topics.
The paper should be empirical but analytical, concise, well written and reflect appropriate
level of understanding of the paper subject.
Individual contribution of group members must be demonstrated. All papers will be invited to
class presentation and discussion.

Attendance Policy
As stated in the university catalog, “students are expected to attend class; there is no system
of permitted absences.” Students may not normally receive credit for a course if more than
three weeks of classes are missed. To clarify, if you miss more than six (6) classes you could
get an “F”. Kindly note that missing one class of this course is equivalent to missing two
classes, i.e. one week of classes since one class is worth of two ordinary classes.
For a complete explanation of AUC’s attendance policy, please consult the university
Catalog.

The University Academic Integrity Policy

All students are expected to agree to and comply with the University Academic Integrity
Policy which states
“Valuing the concepts of academic integrity and independent effort, the
American University in Cairo expects from its students the highest standards
of scholarly conduct. The University community asserts that the reputation of
the institution depends on the integrity of both faculty and students in their
academic pursuits and that it is their joint responsibility to promote an
atmosphere conducive to such standards.”
Detailed information about the University Academic Integrity Policy may be found in
the University Catalog and on the University Web site.

Professional Conduct and Academic Integrity

All students are expected to be aware of the AUC’s Office of Equal Opportunity and
Affirmative Action: Discrimination, and Sexual Harassment Policies and Complaint
Procedures: “The American University in Cairo (AUC) is committed to providing a
secure educational and work environment for its faculty, students, staff, and
administrators, as set out in its policies on Equal Opportunities and Affirmative
Action and on Discrimination and Sexual Harassment. AUC does not tolerate
harassment, including sexual harassment, or any form of discrimination on grounds
included in its policies. Accordingly, AUC prohibits such discrimination and sexual
harassment.”

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Course Schedule
Week Session Date Topic Chapter/
Readings Assigned
1 05.09.2021  Introduction & discussions: Role Notes & Elements
of banks Of Banking
 Money, definitions and functions
2 12.09.2021  Savings Vs. Investments Notes & Elements
 Rise of Digital Money Of Banking

3 19.09.2021 Commercial Bank structure & Elements of

Services: Banking
 Banks accounts types Ch. 3, 5 & 6
 Banks services
4 26.09.2021 Financial markets: Money, Banking
 Functions Financial Markets
 Structure
5 03.10.2021  Banks Financial Statements &
Performance Analysis
 Balance Sheet
 General Principals / Concepts of
Bank’s Management
[Management of Liquidity,
Assets, Liability & Capital]
6 10.10.2021  Income Statement
 Ratio Analysis
 Case Study
7 17.10.2021 Mid Term Exam
8 24.10.2021  Corporate Lending AUC Money &
 Corporate Financing Structure Banking material
 Determinants of Corporate
Financing

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 9 31.10.2021  Types of Finance Sources; AUC Money &
 Equity; Common & Preferred Banking material
 Debts; Bank debts, Bonds &
Leasing
 Weighted Average Cost of
Capital WACC – Concept
 Tenor Matching – Concept
10 07.11.2021 Corporate Lending Rationales AUC Money &
 Asset Conversion Cycle Purpose, Banking material
Working Investment vs.
Working Capital [concept] &
Risks
 Asset Protection Lending
 Cash Flow Lending
11 14.11.2021 Corporate Financial Analysis AUC Money &
 Balance Sheet Banking material
 Income Statement
 Cash Flow Statement
12 21.11.2021 Corporate Financial Analysis AUC Money &
 Ratio Analysis Banking material

13 28.11.2021 Case Study

14 05.12.2021 Final Project
15 12.12.2021 Review Session

Blackboard Technical Support and Assistance:

 Blackboard hotline:  0122.900.5544 or blackboard@aucegypt.edu
Or submit a ticket on http://itsupport.aucegypt.edu/