Canada hosts partners to advance establishment of the Defence, Security and Resilience Bank
Press Release + Noah Note
March 23, 2026 – Montréal, Quebec - Department of Finance Canada
The Honourable François-Philippe Champagne, Minister of Finance and National Revenue, the Honourable David McGuinty, Minister of National Defence, and the Honourable Anita Anand, Minister of Foreign Affairs, welcome Canada’s role as host of in-person negotiations beginning today among representatives from eighteen countries to establish the Defence, Security and Resilience Bank (DSRB). This new multilateral financial institution will bring together likeminded partners to mobilize and deploy private capital and support collective security.
The DSRB will provide long-term, low-cost financing for defence, security, and resilience initiatives across supply chains, helping to address critical financing gaps, with benefits for member governments and defence firms, particularly small- and medium-sized enterprises. The DSRB will also be an important new tool to strengthen collaboration with allies and like-minded partners on defence and security and will support member nations in their efforts to ramp up defence investments.
In the months ahead, Canada will work closely with international partners in advancing the DSRB initiative. As part of this effort, the first in-person round of negotiations kicks off in Montréal on March 23 and runs until March 26, working toward a charter that will define the governance and operations of the Bank. In this context, Canada is playing a leading role, building on its broader efforts to strengthen national defence and support its defence industrial base.
Budget 2025’s historic defence plan – including more than $80 billion in investments – alongside Canada’s newly unveiled Defence Industrial Strategy, underscores the seriousness with which the Government of Canada is advancing its rearmament efforts and reinforces Canada’s role as a trusted partner in collective defence and security. This leadership, combined with Canada’s robust financial sector and growing defence industrial base, is driving growing interest in establishing the Bank’s headquarters in Canada.
In an increasingly uncertain and divided world, Canada is stepping up to lead with partners in building the DSRB as a cornerstone of collective security. By mobilizing capital at scale and strengthening industrial capacity, the DSRB will help ensure that Canada and its partners are equipped to meet today’s defence challenges with speed, resilience, and unity.
Quotes
“Canada is committed to advancing the DSRB and by extension strengthening partners’ resilience in a shifting geopolitical landscape. With a world-class industrial base and skilled workforce, Canada is uniquely positioned to support the evolving security and technology needs of our partners. Through these discussions, we are cementing the building blocks of a new institution that will bolster the capacity of partners’ defence industrial bases.”
The Honourable François-Philippe Champagne, Minister of Finance and National Revenue
“The Defence, Security and Resilience Bank will work hand in hand with Canada’s Defence Industrial Strategy, by supporting a more robust, responsive, and resilient defence industry at home, and close collaboration with our partners. At a time of increasing global uncertainty, it reflects our shared commitment to make sure our partners have the capabilities they need, when they need them.”
The Honourable David McGuinty, Minister of National Defence
“Canada is stepping up with like-minded partners to establish the Defence, Security, and Resilience Bank—an ambitious initiative that will mobilize capital at scale, accelerate defence production, and strengthen collective security. This will support our industries and ensure they are equipped to meet rising demand, so we can deliver on our shared commitments.”
The Honourable Anita Anand, Minister of Foreign Affairs
Quick facts
Isabelle Hudon, President and Chief Executive Officer of the Business Development Bank of Canada (BDC), is Canada’s lead negotiator for establishing the DSRB.
Canada is on track to hit NATO’s 2 per cent of GDP spending target this fiscal year—and is on a pathway to meet NATO’s Defence Investment Pledge of spending 5 per cent of GDP on defence by 2035.
On February 2, 2026, the Minister of National Defence and the Minister of Finance met with Canada’s leading financial institutions for a defence financing roundtable and indicated that the Government is publicly backing the DSRB initiative.
On February 17, 2026, the Prime Minister launched Canada’s Defence Industrial Strategy, which outlines how Canada will enable its defence industry to provide technological and operational advantage to the Canadian Armed Forces by renewing our relationship with industry, transforming procurement through the new “Build-Partner-Buy” framework, investing in Canadian innovation and commercialisation, securing supply chains and working with key domestic and international partners.
Noah Note: Canada officially makes it's pitch on the DSRB starting today with the express goal of getting the Bank hosted in Canada. Of all the countries currently exploring the DSRB, none have been as aggressive and supportive as Canada. One would almost believe we had already been given garuntee that we would be hosting the Bank.
Prime Minister Mark Carney has been keenly on the DSRB file. It is something that he seems to personally want to see done, and along with SAFE is expected to form a key pillar outside government to help support and fund Canada’s Defence Industrial Base, and in turn support transitioning Canada’s Defence Industry into a proper exporter.
All Six of Canada’s major banks, National Bank, RBC, CIBC, Scotiabank, BMO and TD havw confirming their intent to support the new bank. Ontario, Montreal, and British Columbia have put out their bids in an attempt to swoon a potential choice of location for the new bank. I feel the need to mention it is not garunteed Canada will get this, though again we are certainly being the most vocal and out there about it.
To recap for all the new folks… The DSRB envisions itself as a conduit delivering long-term, low-cost financing for defence and dual-use projects backed by the combined credit strength of member states and financial tools from private partners.
The bank will provide AAA-backed loans and guarantees not just to countries looking to finance new procurements, but also to companies looking to strengthen the Western Defence Industrial Base and supply chain.
The bank is owned by the collective member states that sign the charter. As a cost of signing, member states pay an immediate contribution (representing 20% of the bank's funding) to provide initial capital to the bank. This is supported by Callable Capital, which will be backed by the proposed AAA-rating the bank aims to secure through the ownership of its member states.
In theory, this allows member states and industry access to significant capital without having to take on the debt directly. It provides defence-specific financial support that doesn't contain the restrictions, while providing more long-term, diverse financing options.
The bank envisions itself as a global system accessible to NATO members, EU member states, and Indo-Pacific partners. It is not a NATO fund as some media portrays it. It is an open, collective financing instrument that, in theory, would allow anyone deemed eligible.
These talks will be most significant indicator of the banks future, and it is likely we will get a better idea of Canada’s chances to potentially host the bank over the next few days. I expect news will slowly trickle out as more details are cemented.
Like the opportunities are there for Canada to capitalize, however I'm still hesitant to say its impact will be significant in the long-term. We saw a similar mentality with SAFE early last year, only for people to very quickly quiet as the details became more cemented and people realized SAFE wasn't going to be a massive capital injection but more an access agreement.
So I'm gonna watch this with interest but caution. I don't wanna be the one to overhype this only to dissapoint all of you.