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Canada Chosen to Host New NATO-Linked Defence Bank

The NATO-linked lender will pool allied credit to lower the cost of long-term defence and resilience projects.

A CF-18 Hornet is parked at Aerospace Engineering Test Establishment (AETE) Hangar 14 in March.
Prime Minister Mark Carney inspects a Swedish RBS 70 NG short-range air defence system while visiting a military base in Adazi, Latvia, on Aug. 27, 2025. The new multinational defence bank will focus on financing defence, security and resilience projects for NATO members and allied nations.
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A Royal Canadian Air Force CP-140 Aurora maritime patrol aircraft performs a flyover of Halifax harbour to commemorate the 35th anniversary of the end of the Persian Gulf War on Feb. 28.

Overview

  • The federal government confirmed late Wednesday that Canada will host the Defence, Security and Resilience Bank after talks in Montreal with nearly 20 founding countries wrapped up.
  • The planned multilateral lender will reduce borrowing costs by pooling members’ credit strength and offering long-term financing for defence, security and resilience needs.
  • Ottawa has not yet chosen the Canadian city for the headquarters, and governments still must finalize the charter, treaties and leadership before operations begin.
  • Canada’s Big Six banks and the Canadian Chamber of Commerce support the plan, and reporting estimates the headquarters could create about 3,500 jobs in defence finance and analysis.
  • The announcement comes as allies step up military spending following Russia’s 2022 invasion of Ukraine and as Canada reiterates plans to meet NATO targets, including a stated path to 5% of GDP by 2035.