This paper addresses “the importance of selecting administrative leaders in Islamic perspective”. The leadership should be qualified in all aspects and it should possess the knowledge, wisdom and sound decision that are indispensable in various spheres of life and in all state institutions including the Islamic banking institutions. The paper focuses more on the most basic components of the selection process which can serve as a guide when choosing leaders. The researcher in this regard follows up the model of Prophet Yusuf (Pbuh) in leadership qualities which require to clarify the most important evidences that should be available in the personal candidate to take over the position or any other leadership post such as the trust and knowledge based on Quranic verses and hadiths. This emphasizes the need of proper selection of the person who holds the position of leadership. The researcher employs descriptive and inductive methods to reach the important results among which are: that the selection of any leader in all cases must be based on the selection of the most suitable person for the leadership, and that selection should be made in light of the two characteristics, namely, the trust and knowledge.