Islamic bank licensees must operate within sound, well-defined credit-granting criteria. These criteria must include a clear indication of the licensee’s target market and a thorough understanding of the obligor or counterparty, as well as the purpose and structure of the credit and its source of repayment. In addition, the criteria must set out who is eligible for credit and for how much, what types of credit are available, and under what terms and conditions the financing may be granted.