SHARIAH GOVERNANCE IN ISLAMIC FINANCIAL INSTITUTION： AN APPRAISAL

With the fast and huge growth and development of Islamic financial institutions, after only four decades, their operation is in the need of continuous improvement and effort of enhancement. Islamic financial system is a combination of innovation and tradition, of ancient values and a vibrant forward-looking design, that says much about the current state of confidence around the world and about the state of the financial services industry, and its potential to contribute not only to the Islamic, but to the non-Islamic world. The base line for any discussion of Islamic financial services is their obvious commercial success. People want them. It is true that Islamic finance is still small compared with the whole global financial system, but the sector is growing fast, as it is illustrated by the fact that total assets in Islamic banks in the world increased by an average of 24% a year. Nor is the market restricted to the Islamic world. Freddie Mac, the US mortgage lending corporation, has been offering mortgage