Reviewer - Determinants Factors of Islamic Banks Profitability in MENA Region Before and During the Covid-19 Pandemic Period

This research has two objectives: (i) explain and analyze the financial indicators of Islamic banking sector in the Middle East and North Africa countries (MENA) before and over the Covid-19 pandemic period, and (ii) explore the key determinant factors that might affect Islamic banks performance before and during Covid-19 pandemic period.
Method/approach- Orbis Bank Focus database and annual financial reports are used to collect financial information of Islamic banks in MENA countries over two years: 2019 and 2020. Descriptive statistics, T-test and multiple regression are employed to analyze the financial structure and performance of Islamic banks before and during Covid-19 pandemic period. The results of this study reveal that (i) there is a sharp drop of financial indicators in Islamic banks during the pandemic period, (ii) liquidity risk, bank size, managerial efficiency ratio and oil price shocks are the determinants of Islamic banks profitability before the appearance of Covid-19, (iii) credit risk, bank size, liquidity risk, managerial efficiency, inflation and oil price shocks are the determinants of Islamic banks profitability during the pandemic period, and (iiii)
there is no significant impact of GDP and capital structure on Islamic banks profitability before and during the Covid-19 pandemic period. The study provides new perspectives that supports regulators, investors, and top managers in the MENA region. A well-managed balance sheet improves the financial
performance and risk management of banking sector in MENA countries, especially in times of crisis and pandemics.