New defence bank to channel capital to SMEs and create 3,500 high‑skilled jobs in Canada
Canada has been chosen to host a new multinational defence bank that aims to mobilise as much as US$135bn for allied military projects and could generate thousands of high‑skilled jobs in defence finance.
CBC News, citing sources who spoke to Radio‑Canada, reports that Canada has been chosen to host the headquarters of the Defence, Security, and Resilience Bank (DSRB).
The Globe and Mail first reported that decision, and Reuters said the choice followed three rounds of negotiations in Montreal involving about 19 founding countries.
CBC News reported that securing the bank is expected to create about 3,500 jobs in defence finance, international operations and specialised research and analysis.
According to Wealth Professional, Ottawa has signalled it will work with international partners on the DSRB, described as a planned multilateral, state‑backed institution designed to support rearmament for European and NATO member countries.
WP reported that RBC, Bank of Nova Scotia, and CIBC, three of Canada’s largest lenders, have confirmed they are partner banks in the DSRB Development Group.
They join other major players, including JPMorgan, Royal Bank of Canada, and Deutsche Bank, in backing the initiative.
CIBC said in its press release that the DSRB is being developed as a multilateral financial institution focused on financing defence, security, and infrastructure projects for NATO members and allied nations.
In a release cited by the WP, Scotiabank said the DSRB is a new international institution intended to increase defence, security and resilience investment over the next decade, using tools such as “low-cost financing, procurement support and credit guarantee programs to mobilize private capital.”
Ottawa has taken a leading role in building the institution.
Last month, Reuters reported that Canada has taken the lead on creating a defence and resilience bank as part of Prime Minister Mark Carney’s drive to strengthen co‑operation between NATO members and other allies, and has hosted meetings in Montreal to draft the bank’s charter.
Foreign Minister Anita Anand said Canada will pitch plans for the new defence bank to G7 nations and urge them to join an initiative that would provide critical financing for small and medium‑sized defence firms that struggle to access capital.
Anand told Reuters that many defence firms are small or medium‑sized enterprises that do not currently have the necessary capital to meet the surge in demand for weapons and other military equipment.
She said the bank would act as a capital “pooling mechanism” for small and mid-sized enterprises, and argued that other initiatives, including the European Union’s €150bn SAFE loans programme, did not necessarily reflect that need.
She added that the capital available will depend on the number of countries that participate and that Canada is advocating for more countries to come on board.
A separate CBC News report said a news release from Ontario Premier Doug Ford’s office described the bank as serving about 40 countries and following a model similar to the World Bank.
