Jul 15, 12:28 PM

Lebanon Central Bank Bars Banks From Hezbollah’s Shadow Lender Al-Qard al-Hassan

Lebanon’s central bank has ordered all licensed banks and brokerages to cease any direct or indirect dealings with Al-Qard al-Hassan, a financial institution affiliated with Hezbollah, according to a circular dated 15 July and seen by Reuters. The directive instructs financial firms to halt transfers, payments and other interactions with the organisation, which is widely described as Hezbollah’s “shadow bank.” Analysts say the move signals the Shiite group’s waning influence over Lebanese state institutions following its devastating war with Israel. U.S. special envoy Tom Barrack welcomed the ban, calling it a “valuable achievement.” Observers added that cutting Al-Qard al-Hassan off from the formal banking system could further restrict Hezbollah’s access to hard currency as Beirut seeks to rebuild investor confidence and unlock international support.