Lebanon moves against Hezbollah’s shadow bank

Lebanon’s government is reportedly trying to bring Hezbollah’s Al-Qard al-Hassan financial institution under state supervision, in what could become one of the most dramatic challenges to Hezbollah’s economic power in years.

Al-Qard al-Hassan operates as a Hezbollah-controlled “shadow bank,” outside the authority of Lebanon’s central bank. For years, it has helped Hezbollah maintain financial control over the Shiite community, distribute loans, move money and preserve its influence even as Lebanon’s official banking system collapsed.

According to the report, Beirut’s move is driven by heavy US and international pressure, Lebanon’s deep economic crisis and an attempt to restore state sovereignty after Hezbollah’s military weakening. Washington is demanding action against Hezbollah’s financial networks as part of any future economic support and as Lebanon tries to improve its standing with international anti-money-laundering bodies.

The Lebanese central bank reportedly banned financial institutions from dealing with Al-Qard al-Hassan in July 2025, while the Interior Ministry moved in early 2026 to cancel permits connected to the organization.

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