Discovering the purpose of Al-Qard Al-Hassan, a financial institution connected to Hezbollah.

Israeli airstrikes hit a branch of Al-Qard Al-Hassan in Beirut, a financial institution linked to Hezbollah, which provides interest-free loans and support to local communities. Despite the attacks, the bank continues operations, offering essential services amid Lebanon's ongoing financial crisis.

On Monday, Israel conducted an airstrike on a building in the southern suburbs of Beirut, identified as a branch of the financial institution Al-Qard Al-Hassan, which is affiliated with Hezbollah. This action is part of Israel’s expanded efforts to systematically target organizations connected to the Lebanese-based network. Al-Qard Al-Hassan, founded in 1983, functions according to Lebanese tradition, offering interest-free loans and financial support to its community. Its services are accessible to people of all religious backgrounds, providing financial assistance without hidden fees or conventional banking charges.

The institution operates independently from Lebanon’s central bank, Banque du Liban, and is not part of the international banking system. Following the collapse of Lebanon’s banking sector in 2019, Al-Qard Al-Hassan grew in prominence, supplying capital for entrepreneurs and small businesses. In addition to its financial services, Hezbollah runs charitable institutions such as schools, hospitals, and low-cost grocery stores, providing essential social services in Lebanon.

The escalation of conflict began on March 2, after a retaliatory response to the assassination of Iran’s senior cleric. Since then, Israel has carried out hundreds of airstrikes across Lebanon, resulting in nearly 500 deaths, including 83 children, and thousands of injuries. Israel has stated that its objective is to diminish Hezbollah’s capacity to carry out attacks against northern Israel.

Reasons for Targeting Al-Qard Al-Hassan

Israel considers Al-Qard Al-Hassan part of Hezbollah’s organizational network. U.S. authorities have previously scrutinized the institution, citing financial connections to Hezbollah in 2007, 2021, and early 2026. During 2024, Israel conducted targeted strikes on several of the institution’s branches. Human Rights Watch has criticized these attacks, noting that the use of a financial institution by an armed group does not constitute a lawful military target. At the time, Al-Qard Al-Hassan operated around 30 branches across southern Lebanon, the Beirut suburbs, the Bekaa Valley, and central Beirut.

Impact on Lebanese Citizens

Despite repeated Israeli strikes, Al-Qard Al-Hassan continues to operate. Long-term users confirm that its financial services remain active amid the attacks. Lawyer Fouad Debs, representing the Depositors Union, emphasized that the institution provides financial access for unbanked citizens, offering stability and credit during Lebanon’s ongoing financial crisis. Experts indicate that the strikes have limited direct financial consequences, as most targeted locations hold minimal cash reserves. Lebanese political scientist Imad Salamey noted that these operations are largely symbolic, aimed at exerting political and psychological pressure on Hezbollah.

Advance warnings given prior to strikes highlight that Israel’s focus is on Hezbollah infrastructure rather than civilian targets. Nevertheless, disruptions can affect citizens who store valuables or depend on Al-Qard Al-Hassan for essential financial services. The financial crisis in 2019 severely devalued Lebanon’s currency and increased poverty levels, making the institution’s support crucial for many residents.

Humanitarian and Security Consequences

Israel ordered mass evacuations from the southern Beirut suburbs of Dahiyeh and areas south of the Litani River, displacing approximately 700,000 people. Clashes between Hezbollah fighters and Israeli forces continue in southern Lebanon, exacerbating the humanitarian situation and straining local communities reliant on Al-Qard Al-Hassan for financial support.

Conclusion

Al-Qard Al-Hassan functions as an essential financial resource for numerous Lebanese citizens while maintaining its affiliation with Hezbollah. Israeli airstrikes targeting its branches aim to disrupt Hezbollah’s operational capabilities, but experts suggest these attacks have limited practical impact on the institution’s financial operations. The ongoing conflict, however, continues to affect both the users of Al-Qard Al-Hassan and the broader civilian population across Lebanon.

Sources:

• Al Jazeera – What is the Hezbollah‑linked financial institution Al‑Qard Al‑Hassan?
• Xinhua – Israel strikes Hezbollah‑linked financial institution in Lebanon
• i24NEWS – IDF strikes Hezbollah financial assets in Lebanon
• What is the Hezbollah-linked financial institution Al-Qard Al-Hassan?

Author: Ethan Caldwell
Ethan Caldwell is an experienced reporter with 10 years covering international news. He specializes in politics and economics, with strong investigative journalism and analytical writing skills.