ABSTRACT: Despite the importance and applicability of corporate governance practices in financial institutions,the literature indicates very few studies have attempted to investigate the effect of corporate governance practice on the performance of financial institutions, specifically base on the Islamic critical theory view. The literature reveals that there is not only limited information on corporate governance practice of Islamic financial institutions (IFIs) but also little research in this important area. Drawing from the review of the literature and past studies, this paper specifically identifies and reviews corporate governance practices that are base on Islamic critical theory view essential to the performance as well as financial viability of IFIs. The findings of the study indicate that Islamic corporate governance practicesare linked to Islamic critical theory based on Quran and Sunnah. Having
competencies in the practices will allow IFIs to not only improve their organizational performance but also sustain
their financial viability as well as competitive advantage.
KEYWORDS:Corporate Governance, IFIs, Performance.