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Banks play an important role in the development and prosperity of countries' economies.We cannot carry out daily transactions, whether individual or business, without their presence.The purpose of current study is to investigate whether a relationship exists between insolvency risk and Islamic banks' profitability in the MENA region.Previous researchers covered this risk individually, however, in this study the risk is taken into consideration including the deposit ratio which are the control variables in this study.For this purpose, data were obtained from 12 MENA countries covering 20 Islamic banks as panel data over ten years period from 2011 till 2020.The fixed effect models were relied upon to analysis data.In the study, the results of two profitability measures (ROA and ROE) were discussed to explain how they are distinct from each other using insolvency risk as independent variable.The results show that insolvency risk has insignificant effect on the profitability of Islamic banks measured by ROA and ROE, regarding control variable, the outcome demonstrate that deposit ratio has insignificant effect on ROA and ROE.
A Wed, study studied this question.