On Monday, Israel targeted a building in Beirut’s southern suburbs that was reportedly a branch of the Hezbollah-linked al-Qard al-Hasan financial institution, as it intensified attacks against institutions linked to the Lebanese group.
Al-Qard al-Hasan, a quasi-banking institution that provides interest-free loans to people, is one of many charitable organizations run by Hezbollah, including schools, hospitals and low-cost grocery stores.
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Israel launched new attacks on Lebanon on March 2 after Hezbollah responded to the assassination of Iran’s Supreme Leader Ayatollah Ali Khamenei on February 28. Despite Israel’s daily violations of the 2024 ceasefire, Hezbollah has not attacked Israel for more than a year.
Since then, Israel has attacked Lebanon hundreds of times, killing nearly 500 people, including 83 children, and injuring thousands. Israel claims it is trying to destroy Hezbollah’s ability to attack its northern territory.
So what do we know about al-Qard al-Hasan and why Israel is targeting it?
Here’s what you need to know:
What is Al-Qard Al-Hasan?
It is a financial institution that provides microcredit to people in Lebanon. Many people in the country use it to deposit money or take loans against gold. It is different from a traditional bank that does not charge banking fees or interest on loans.
Founded in 1983, the organization is linked to Hezbollah but serves people of all religious communities. This has become more prominent in recent years since the collapse of Lebanon’s banking system in 2019.
It deals mostly in small loans, usually backed by gold deposits, but offers bank accounts without traditional banking fees. Al-Qard Al-Hassan is not regulated by Banque du Liban, the central bank of Lebanon, or part of the international banking network.
A local Beirut resident who said he has been using al-Qard al-Hasan for 15 years told Al Jazeera that the organization continues to operate despite the Israeli attacks.
Fouad Debs, a lawyer and member of the Depositors Union who fought against Lebanon’s banking system for restricted depositors’ access to funds during the country’s 2019 financial crisis, said Al-Qard Al-Hassan provided financial status or access to loans for many of the unbanked.
Why is it being targeted?
Israel claims it is trying to destroy Hezbollah and its ability to function as an organization.
Hezbollah was founded in response to Israel’s 1982 invasion of Lebanon. Since then it has evolved into one of the most powerful players in Lebanese politics. Its political ally, the Amal Movement, is a key player in Lebanon’s fractured democratic political system.
The US Treasury Department imposed sanctions on al-Qard al-Hassan in 2007, accusing Hezbollah of using it as a front to hide its financial activities and gain access to the international financial system. Those restrictions were strengthened in 2021 and again earlier this year.
This is not the first time that Israel has attacked al-Qard al-Hasan branches. Many branches are targeted during the 2024 hike. Human Rights Watch called the attacks “war crimes”.
Before the last hike, the firm had around 30 branches.
On October 20, 2024, Israel struck most of its offices in southern Lebanon, the southern suburbs of Beirut, and the Bekaa Valley. Central Beirut also has a couple of offices
“An armed group’s use of a financial institution, association or bank is not an effective contribution to military action and is therefore not a legitimate military target under the laws of war,” a Human Rights Watch report from 2024 said.
“Repeated attacks by the Israeli military on Lebanese financial institutions indicate a deliberate and illegal attack on Hezbollah’s civilian wing,” said Ramzi Kais, Lebanon researcher at Human Rights Watch, in a 2024 report.
“The identification of a civilian organization as a military target because of its relationship rather than its effective contribution to military action would jeopardize all commercial operations in wartime.”
Do strikes have an impact?
Imad Salami, a Lebanese political scientist, told Al Jazeera that the attacks had little effect on the organization’s capacity.
“Israel’s strikes on al-Qard al-Hasan are largely symbolic and part of a broader campaign of political and psychological warfare against Hezbollah’s organizational network,” Salami said.
Many sites “mainly offices or service branches have little real liquidity, meaning direct financial impact is limited,” Salami added.
Why target offices if the attacks have so little impact?
“Issuing warnings before strikes helps Israel amplify psychological warfare with media coverage that reinforces the narrative that it targets Hezbollah-affiliated infrastructure rather than civilians,” Salami said.
Analysts said the impact on Hezbollah would be minimal, but could hurt Lebanese who keep their valuables in al-Qard al-Hassan, especially the thousands who are working class or unbanked.
The financial crisis of 2019 saw the Lebanese currency devalued by more than 90 percent and plunged much of the country into poverty.
Israel ordered mass evacuations in the last week of Dahiyeh in the southern suburbs of Beirut and in areas south of the Litani River, which flows across southern Lebanon. About 700,000 people have been displaced.
Meanwhile, battles continue between Hezbollah fighters and Israeli forces in southern Lebanon.
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