Canada’s Big Banks Signal Shift on Defence Financing
Canadian banks back creation of Defence, Security and Resilience Bank (DSRB)
Four of Canada’s largest financial institutions - Royal Bank of Canada (RBC), Scotiabank, Canadian Imperial Bank of Commerce (CIBC), and National Bank - have confirmed plans to support the establishment of a new multinational lending institution dedicated to financing defence and security-related projects. Their participation signals a notable change in approach toward a sector that Canadian banks have historically avoided.
Key Highlights of the Partnership
Formation of a New Defence-Focused Bank: The banks have agreed to partner with the development group working to create the Defence, Security and Resilience Bank (DSRB), an international institution intended to fund projects related to defence infrastructure, technology, and security capabilities.
Alignment with Global Financial Institutions: The Canadian banks are joining a broader consortium that already includes major global players such as JPMorganChase, ING Group, Deutsche Bank, Commerzbank AG, and Landesbank Baden-Württemberg, reflecting an increasingly coordinated international effort.
Policy Backing from the Canadian Government: The federal government has publicly endorsed the initiative and participated in a virtual meeting of the 13 founding nations of the DSRB, indicating political support for stronger financial mechanisms to support defence investments.
Shift Away from Traditional ESG Constraints: The move represents a departure from previous investment policies that discouraged financing defence-related companies due to environmental, social, and governance considerations, which had limited capital access for the sector.
Potential Financial Commitment from Canada: Early discussions suggest that Canada’s contribution to the new institution could exceed $1 billion, with initial funding expected to count toward NATO defence spending commitments.
Ongoing Structural Negotiations: Work is under way to determine the bank’s governance model, operational framework, and headquarters location, with Canada playing a central role in negotiations through appointed representatives.
The participation of four major Canadian banks in the proposed Defence, Security and Resilience Bank reflects a structural shift in how defence financing is approached within the country. By aligning with an international coalition of financial institutions and with formal government backing, the initiative creates a new channel for capital to flow toward security and resilience projects. The effort signals an emerging framework in which defence-related investments are treated as a strategic economic priority rather than a restricted sector.
