Adi Rahmannur Ibnu 150 Ijtimā’iyya, Volume 3, Number 2, September 2018 Ijtimā'iyya: Journal of Muslim Society Research e-ISSN 2541-0040; p-ISSN 2541-2736; pages 150-166 DOI: https://doi.org/10.24090/ijtimaiyya.v3i2.1917 IFSB Role in Preventing Financial Crises and Islamic Ethics Perspective Adi Rahmanur Ibnu Djuanda University Bogor adi.rahmannur@unida.ac.id Abstract Islamic Financial Services Board (IFSB) acts as the international regulatory and supervision framework for Islamic financial services institution. Though Islamic financial industry keeps growing in promising pace, it still experiences some criticisms; one of them is an underestimate claim regarding Islamic finance soundness and safety which notoriously promoted to be better than the non-Islamic is lack of evidence. This claim, however, serves as an early warning to the trajectory of Islamic finance development and global vision which is the ensure soundness and prudent of Islamic finance industry. Thus, this study addresses this challenge by analyzing IFSB’s published frameworks based on the Islamic ethics. This is a descriptive inquiry which employed library-study approach. The result of this study suggests that IFSB should be more focus on human adversaries since moral hazard, either done collectively or individually, plays determining role in some systemic financial crises in the last two decades. Keywords: ifsb, islamic ethics, moral hazard A. Introduction Preventing systemic financial crises has been a global concern. The damage of its severity has also been focus and coverage by many, including media, international organization, government agencies and most likely middle-down income groups who suffer most from the crises. The World Bank has drawn some lesson for both developed and developing countries from the last financial crises to learn. At least, there have been three responses government can possibly do: 1) in higher-income countries, more strict and broad regulation are set and implemented to impose higher capital reserve and risky behavior, 2) in less high-income countries, authority will regulate financial institution to ensure excessive and risky capital accumulation by putting more emphasize on domestic risk management strategies (world bank, 2010). Basel Committee on Banking Supervision (BCBS) also