The urgency of Leadership in Islamic Banking Industries Performance Lucky Nugroho 1 , Nurul Hidayah 2 , Ahmad Badawi 3 , Akhmad Amien Mastur 4 {lucky.nugroho@mercubuana.ac.id 1 , nurul.hidayah@mercubuana.ac.id 2 , a.badawi@mercubuana.ac.id 3 , amien_mastur@yahoo.co.id 4 } Universitas Mercu Buana, Indonesia 1 , Universitas Mercu Buana, Indonesia 2 , Universitas Mercu Buana, Indonesia 3 , Doctoral Program of Islamic and Economics Finance of Trisakti University, Indonesia 4 Abstract. The purpose of this study is to provide information to all stakeholders in the Islamic banking industry related to the importance of the role of leaders in maintaining the performance of the bank Islamic Bank to increase the trust of the ummah in using financial services of Islamic banks. This research is a conceptual paper using qualitative methodology supported by data and theoretical studies from previous studies. The discussion of research questions is as follows: (1) How Leadership in Islamic Perspective; (2) How is the Relationship of Ownership in Leadership; (3) How is the Relationship between Sharia Banking Conditions and the current Leadership Phenomenon. The Islamic banking industry requires trustworthy leaders so that there is a sense of ownership in managing Islamic banks that have an impact on increasing performance. However, on the other hand, current Islamic banking still has a dependency on management that originates from its parent bank, which is a conventional bank. Therefore an independent Islamic bank is needed so that it can provide more significant benefits to the community and the ummah Keywords: Leadership, Islamic Banking, Performance 1 Background The concept of the purpose of Islamic banking is to provide welfare to the people. The use of sharia, or commonly called maqhasid sharia, which regulates how humans can achieve safety in the world and happiness in the hereafter or called 'Falah.’ Furthermore, according to Nugroho (1) Islamic banks do not only aim to achieve the profit aspect but also include aspects of people, planet and prophet so that with the existence of Islamic banking, the Muslim Ummah in Indonesia which is the majority of the population will be guaranteed in implementing religious teachings in kaffah or totality (2,3). On the other hand, the growth of the Islamic banking industry in terms of assets from 2009 to 2015, on average, is higher when compared to conventional banks. The average growth of the sharia banking industry in the 2009-2015 period was 29.86%, while the conventional banking industry only reached 15% so that the growth of the sharia banking industry was double that of the conventional banking industry. Furthermore, the annual growth ratio between the sharia banking industry and the conventional banking industry can be seen in Graph 1.1 as follows: ACEBISS 2019, March 26-30, Jakarta, Indonesia Copyright © 2020 EAI DOI 10.4108/eai.26-3-2019.2290681