Canada to Host Planned Multilateral Defence Bank

The federal government says Canada will host a planned multilateral defence bank aimed at providing Canada and its allies with low-cost, long-term financing for defence and security needs.

The Defence, Security and Resilience Bank (DSRB) is still in the development stage, with participating countries working to finalize its legal structure, governance model, and operational framework ahead of its formal establishment, the government says.

Finance Minister François-Philippe Champagne said he is “very pleased with the progress made during recent negotiations in Montreal,” calling them “a crucial step in taking the DSRB from idea to reality.”

The proposed DSRB would help fund defence procurement and enable governments and industry to access capital, while also encourage private-sector participation through guarantees and other financial tools, the government said.

Canada hosted a series of preparatory meetings in early 2026 that culminated in the April 29 announcement that it will host the bank’s headquarters. A Jan. 30 multilateral meeting with more than 10 participating countries advanced early discussions, followed by a Feb. 2 defence financing roundtable involving federal ministers and major Canadian financial institutions.

Royal Bank of Canada, TD Bank Group, Scotiabank, Bank of Montreal, CIBC, and National Bank of Canada have agreed to participate in developing the institution.

A major negotiating round took place in Montreal from March 23 to 26, bringing together representatives from 19 founding countries, primarily drawn from NATO and allied partner states, to draft the bank’s charter and governance framework.

Isabelle Hudon, president and CEO of the Business Development Bank of Canada, served as Canada’s lead negotiator throughout the process.

Establishment of the DSRB is pending completion of its legal and institutional design.

While not giving a formal timeline, Prime Minister Mark Carney said the development of the bank would happen over months and quarters. Carney said the announcement of the creation of the bank is “good news,” and while it signals progress, “it’s not the end of a process.”

Toronto, Vancouver, Montreal, and Ottawa are all vying to host the DSRB, with varying degrees of formal bid development. Ontario has released a structured bid backing Toronto, while Vancouver has launched an official bid supported by provincial and civic leaders. Montreal’s campaign is backed by a broad coalition of business and academic figures, alongside government support, while Ottawa is being promoted through advocacy by local business and defence stakeholders, emphasizing its proximity to federal institutions and diplomatic networks.

The bank emerged from growing NATO defence financing pressures following Russia’s 2022 invasion of Ukraine, as governments sought ways to scale industrial capacity and support smaller suppliers beyond traditional procurement and lending models.