In order to maintain a sound credit portfolio, Islamic bank licensee must have an established formal transaction evaluation and approval process for the granting of credit. Approvals must be made in accordance with the licensee’s written guidelines and granted by the appropriate level of management. There must be a clear audit trail documenting that the approval process was complied with and identifying the individual(s) and/or committee(s) providing input, as well as making the credit decision. Islamic bank licensees must invest in appropriate credit decision making tools and resources so that they are able to make sound credit decisions consistent with their credit risk strategy and meet competitive time, pricing and structuring pressures.