Canada wins bid to host new defence financing bank as allies back Montreal deal

Canada will host the headquarters of a new multinational Defence, Security and Resilience Bank after member states voted in favour during negotiations concluded in Montreal, the federal government said late on April 30.

The Defence, Security and Resilience Bank (DSRB) is designed to help NATO members and allied countries mobilise low-cost capital for defence, security and resilience investments amid heightened geopolitical tensions, Caliber.Az reports per foreign media.

Federal Finance Minister François-Philippe Champagne said the talks marked a key step in the project’s development.

“These negotiations are a crucial step in taking the DSRB from idea to reality and launching this new defence-focused multilateral bank. The time to act is now, and I look forward to continuing working with our partners to establish and launch the DSRB,” Champagne said.

A source familiar with the discussions said Canada was the unanimous choice among 19 participating countries, though cautioned that the project still required further agreement before it is formally launched.

“There’s still a lot of work to do, but Canada will definitely be the host if the bank goes ahead,” the source said.

The bank, which would be owned by up to 40 nation-states, has backing from major financial institutions, including Canada’s Big Six banks as well as Deutsche Bank and JPMorgan.

Supporters say it will strengthen defence financing capacity across allied countries. However, critics argue the initiative risks diverting public resources from domestic priorities.

In an open letter earlier this month, several organisations said the plan would “take money away from social and environmental needs” and warned that “Financing war won’t bring us peace,”

David Perry of the Canadian Global Affairs Institute said the decision reflected renewed international confidence in Canada’s defence role.

“I think it shows that Carney’s gone a long way to restore Canadian standing and confidence amongst other partners and allies on defence issues,” Perry said. “I think it would have been extremely unlikely for this initiative to land with Canadian leadership two years ago.”

The federal government has not yet announced which Canadian city will host the institution, although Toronto, Ottawa, Montreal and Vancouver have all been floated as contenders. A provincial official said, “Toronto is the only logical place for it to be as the financial capital of the country.”

By Aghakazim Guliyev