Hezbollah Faces Strong Local Opposition in South Lebanon Over New Bank Branch

Hezbollah recently attempted to open a new branch of "Al-Qard Al-Hassan," known as the terror group's bank, in southern Lebanon. Local residents strongly opposed the move, fearing that Hezbollah's increased presence would make the area a target for Israeli Defense Forces (IDF) strikes. According to the Lebanese newspaper An-Nahar, Hezbollah retreated from its plan to avoid public resentment. The IDF has previously launched heavy attacks on Hezbollah's bank branches across Lebanon, with the latest strike occurring in March after Hezbollah fired rockets into Israeli territory.

Lebanese political activist Harry Mourd noted a significant shift in the Shiite community's mood, stating that the community no longer automatically supports Hezbollah's decisions. He criticized Hezbollah for making "wrong decisions that have led the community into a deadly cycle," describing any institution built by the group as a "ticking time bomb" harming both Shiites and other Lebanese. Conversely, Hezbollah-affiliated media like Al-Akhbar argue that the bank plays a vital social and economic role in its communities and that attacks on it are part of a Lebanese state political strategy against Hezbollah.

In May, Hezbollah Secretary-General Naim Qassem warned that people would protest if the bank were shut down. Lebanon's Justice Minister Adel Nassar requested the Attorney General investigate the bank for suspected money laundering, but progress has stalled due to incomplete financial documentation from the central bank. In July 2025, Lebanon's central bank banned financial institutions from transacting with Hezbollah's bank, adding to a series of longstanding and recent U.S. sanctions.

So far, the only delays in the bank's operations have resulted from public pressure by residents and local authorities, such as Sidon municipality evacuating a branch from its commercial market. The bank is part of a broader Lebanese government effort, led by President Joseph Aoun and Prime Minister Najib Mikati, to reduce Iranian influence in Lebanon. Hezbollah continues to refuse disarmament despite agreements with the U.S. and Israel, rejecting Lebanese government decisions mediated by the U.S. and insisting that discussions about its weapons occur solely within national strategic talks, free from external influence.