Canada will host the first round of in-person negotiations to establish a new multilateral defence bank beginning Monday, further solidifying its role as a leading country in setting up the institution.
The negotiations will run in Montreal until Thursday and will be the first of three rounds of meetings, meant to bring 18 founding countries together to decide upon the Defence, Security and Resilience Bank’s (DSRB) charter, treaties, headquarters location and chief executive officer. Negotiations will conclude in April.
In its final form, the institution could include as many as 40 countries, all NATO members or their allies.
“Canada is committed to advancing the DSRB and by extension strengthening partners’ resilience in a shifting geopolitical landscape,” Finance Minister François-Philippe Champagne said in a written statement on Sunday.
The federal government officially endorsed the DSRB for the first time in January, when Mr. Champagne posted about it on X. Prime Minister Mark Carney has since spoken publicly about his desire to see the bank succeed in Canada and has already brought it up in meetings with several world leaders in 2026.
Canada officially endorses leadership role in new defence bank
The bank is meant to provide long-term, low-cost financing for defence projects undertaken by participating countries as states all over the world attempt to increase their defence-related spending and rearm in an increasingly divided world.
Its structure will be akin to other existing multilateral institutions, such as the World Bank Group, and it’s likely to bring 3,500 defence finance jobs to wherever its headquarters land, according to the Defence, Security and Resilience Bank Development Group tasked with establishing the bank.
Isabelle Hudon, chief executive officer of the Business Development Bank of Canada, is representing this country at the negotiating table. One reason to host negotiations in Montreal is the meeting’s proximity to the BDC’s headquarters in the city.
Ms. Hudon told The Globe and Mail in January that Canada’s financial contribution to the bank could be more than $1-billion but this is not yet finalized. Initial contributions made by NATO members will count toward their commitment to spend the equivalent of 5 per cent of GDP on defence.
Montreal is one of several Canadian cities that have put their hands up to host the headquarters of the defence bank, despite the fact that the host country has yet to be determined and the bank yet to be established. The City of Ottawa began campaigning to host the bank in November, with Toronto, Montreal, Vancouver and Halifax all launching their bids shortly after. Toronto, Montreal and Vancouver have all received backing from their respective provincial governments, as well.
Canada’s Big Six banks all on board to support new multinational defence bank
Canada has by far been one of the most vocal countries about its intentions to establish and host the multilateral defence bank, with all six of its major banks announcing their support for the DSRB by early February. That means six of the 12 international institutions now backing the DSRB are Canadian. The other six include JPMorgan Chase & Co. JPM-N, ING Group NV ING-N, Deutsche Bank AG DB-N, Commerzbank AG CRZBF, Landesbank Baden-Württemberg and Natixis.
The DSRB is the brainchild of Rob Murray, chief executive officer of the bank’s development group and founding architect of NATO’s Defence Innovation Accelerator for the North Atlantic, as well as its Innovation Fund.
The bank will be owned by its member countries, which will be asked to contribute in two ways: paid-in and callable capital. The former is an upfront contribution made when a country joins the bank, like a down payment. The latter is a promise to provide extra money if the bank is ever in a crisis – a factor that would help secure an AAA rating for the bank.
Alongside other defence financing initiatives, such as Canada’s participation in the European Union’s Security Action for Europe program, Ottawa says it’s hoping to help grow its domestic defence industry and provide support to companies, particularly small- to medium-sized businesses, which make up the majority of the sector.