Al-Qard Al-Hasan is gradually trying to resume operations in Lebanon after Israel targeted more than 12 of its branches during the latest war, according to local sources cited by Nidaa al-Watan.

The institution, which has long been associated with Hezbollah, is seeking to rebuild its network despite U.S. sanctions, restrictions imposed by Lebanese authorities and growing concerns among residents that new branches could become targets of Israeli attacks.

In southern Lebanon, efforts are reportedly underway to reopen branches without signs displaying the name or logo of Al-Qard Al-Hasan, apparently to reduce the risk of renewed attacks.

In the city of Tyre, residents and business owners recently objected to plans to establish a new branch inside a building that also houses medical clinics, offices and a branch of a commercial bank. They warned that the presence of Al-Qard Al-Hasan could make the civilian building a target.

The concern was particularly strong because a previous Al-Qard Al-Hasan branch in Tyre was destroyed during the war. A petition submitted by residents ultimately led the institution to abandon plans to open the branch at that location, although it could seek another site, according to the sources.

The objections highlight the difficulties facing the institution as it attempts to rebuild after the war.

Pressure from U.S. and Lebanese authorities

The United States designated Al-Qard Al-Hasan in 2007, accusing it of being used by Hezbollah to manage its financial activities and gain access to the international financial system.

In 2021, the U.S. Treasury Department sanctioned seven people linked to Hezbollah and Al-Qard Al-Hasan, saying personal accounts had been used to circumvent sanctions and transfer around $500 million for the benefit of the institution.

During the July 2025 war, Washington imposed further sanctions on seven officials and an entity linked to Al-Qard Al-Hasan, accusing them of helping Hezbollah evade sanctions and access the formal financial system.

In February 2026, the Treasury targeted Joud Exchange, saying it operated under the supervision of Al-Qard Al-Hasan and was part of a network used to convert gold reserves into funds that could be used by Hezbollah.

The Treasury said the network had expanded its activities in predominantly Shiite areas, including Nabatiyeh, the Bekaa Valley and Beirut.

Al-Qard Al-Hasan has also come under pressure from Lebanese authorities.

On July 14, 2025, Banque du Liban issued Circular No. 170, banning licensed banks and financial institutions from conducting direct or indirect transactions with the institution. The measure effectively cut Al-Qard Al-Hasan off from Lebanon's formal financial system.

In June 2026, Justice Minister Adel Nassar referred the institution's file to the Public Prosecutor at the Court of Cassation, requesting appropriate action over allegations that it was conducting financial activities outside the framework of licensed banking operations.

The prosecutor, Judge Ahmad Rami al-Hajj, received the file for review and further action.

Why Hezbollah wants the branches back

The effort to reopen Al-Qard Al-Hasan branches is important to Hezbollah because the institution provides financial services to a large part of its support base, including loans, gold-backed lending and savings services.

The institution has become particularly important as Lebanon's banking system has struggled since the country's financial collapse. Its disappearance would deprive Hezbollah of a major financial and social link with its constituency.

Rebuilding the branches would therefore allow Hezbollah to show that its financial network remains operational despite the war, sanctions and Lebanese restrictions.

But the response from residents suggests that rebuilding may not be straightforward.

People in areas heavily affected by the war have already lost homes, relatives, friends, neighbors and livelihoods. Some are now reluctant to accept anything that could make their communities targets again.

A local source in Tyre told Nidaa al-Watan that residents had already paid a heavy price and were unwilling to put their lives and those of their families at further risk for the reopening of an Al-Qard Al-Hasan branch.