The Canada-led global defence bank has enlisted support from eight other nations, getting closer to the goal of becoming operational in 2027, Prime Minister Mark Carney’s office announced Tuesday.
A joint statement shared by the federal government confirmed that Albania, Belgium, Greece, Latvia, Luxembourg, Romania, Turkey and Ukraine have agreed to help establish the Defence, Security and Resilience Bank (DSRB) at the NATO leaders’ summit in Ankara, Turkey.
“These countries will be entrusted with defining the initial policies and directives of the bank, shaping its operations and ensuring benefits flow to members’ economies,” a press release by the Prime Minister’s office read.
“Together with allies and partners, Canada will continue leading the next phase of this work to bring the bank into operation and strengthen our collective security for the years ahead.”
During negotiations held in Montreal in April, delegates from participating countries voted unanimously in favour of Canada hosting the new bank.
Modelled after the World Bank, the multilateral lending institution will aim to address financing challenges in the defence sector by mobilizing public and private capital as nations seek to secure borders and boost military spending.
The bank will be not-for-profit and entirely owned by member states, according to the DSRB Development Group’s website.
Supporting the creation of the bank are several private sector partners, including all of Canada’s Big Six banks — BMO, CIBC, National Bank, RBC, Scotiabank and TD. Deutsche Bank and J.P. Morgan are also backers.
The bank’s host city has yet to be determined. In December, Premier Doug Ford and Mayor Olivia Chow made a joint bid for the bank to be located in Toronto, highlighting the city’s dominance in the financial sector and its global connections.
It is expected to create approximately 3,500 skilled jobs, according to the provincial government.
Ottawa, Montreal and Vancouver have also expressed interest.
A spokesperson for the DSRB Development Group directed questions to the federal government.
John Fragos, press secretary for the office of the Minister of Finance and National Revenue, called Tuesday’s news a “first step” in establishing the defence bank.
Fragos told the Star that the government is now working with its partners and allies to expand the number of members.
“In due course, this work will inform a number of key decisions and next steps, including the final location of the DSRB within Canada.”
Heading the bank’s future establishment is among other pushes by the federal government to strengthen its defence sector.
The Liberals have already invested more than $65 billion in defence and security in a year, hitting the two per cent NATO spending target.
The government says it is also on path to meet NATO’s pledge of spending five per cent of GDP on defence by 2035.
