Israel on Monday targeted a building in Beirut’s southern suburbs linked to Hezbollah-affiliated Al-Qard Al-Hassan financial institution, escalating attacks against organizations connected to the Lebanese group. The strikes come amid renewed conflict between Israel and Hezbollah, which began after the killing of a top Iranian commander in February.
What is Al-Qard Al-Hassan?
Al-Qard Al-Hassan is a financial institution in Lebanon offering microcredit and loans, often backed by gold deposits. Founded in 1983, it differs from traditional banks by not charging banking fees or interest. While linked to Hezbollah, the institution serves people of all religious communities and has become more prominent since the collapse of Lebanon’s banking system in 2019.
The institution is not regulated by the Banque du Liban, Lebanon’s central bank, or part of the international banking network. A Beirut resident who has used Al-Qard Al-Hassan for 15 years stated the organization continues to operate despite the Israeli attacks. Fouad Debs, a lawyer with the Depositors Union, noted the institution provided financial access to many previously unbanked individuals.
Why is it being targeted?
Israel maintains it is attempting to dismantle Hezbollah and its operational capacity. Hezbollah was established in response to Israel’s 1982 invasion of Lebanon and has become a significant force in Lebanese politics.
The U.S. Treasury Department first applied sanctions to Al-Qard Al-Hassan in 2007, alleging Hezbollah used it to conceal financial activities and access the international financial system. These sanctions were strengthened in 2021 and again earlier this year. This is not the first time Israel has attacked Al-Qard Al-Hassan branches; numerous branches were targeted during the 2024 escalation.
Human Rights Watch has condemned the attacks as “war crimes,” stating that using a financial institution does not qualify it as a lawful military target under the laws of war. Ramzi Kaiss, a Lebanon researcher at Human Rights Watch, said the repeated strikes indicate a deliberate and unlawful attack on Hezbollah’s civilian wing.
Will the strikes have an impact?
According to Imad Salamey, a Lebanese political scientist, the attacks on Al-Qard Al-Hassan are largely symbolic, forming part of a broader campaign of political and psychological warfare against Hezbollah’s network. Salamey added that the targeted sites primarily consist of offices with limited liquidity, minimizing the direct financial impact.
Analysts suggest the strikes will have minimal impact on Hezbollah but could harm Lebanese citizens who keep their valuables at Al-Qard Al-Hassan, particularly those who are working class or unbanked. The 2019 financial crisis has devalued the Lebanese currency by over 90 percent and plunged much of the country into poverty.
Israel has also issued mass evacuation orders for Dahiyeh in Beirut’s southern suburbs and areas south of the Litani River, displacing nearly 700,000 people. Battles continue between Hezbollah fighters and Israeli troops in south Lebanon.
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