Canada Backs €100B Global Defence Bank as G7 Support Lags

Canadian Prime Minister Mark Carney is backing plans for a new global defence bank designed to accelerate military investment, although several major economies have yet to join ahead of a planned charter signing this autumn.

The proposed Defence, Security and Resilience Bank (DSRB), which will be based in Canada, aims to raise about €100 billion ($116 billion). It plans to provide low-cost financing to governments and defence contractors while offering guarantees to lenders supporting smaller companies considered higher-risk borrowers.

Canada has secured support from Albania, Belgium, Greece, Latvia, Luxembourg, Romania, Turkey and Ukraine. Officials familiar with the initiative said the DSRB had attracted roughly €5 billion in commitments by August. Its target includes around €20 billion in paid-in capital and another €80 billion available when required.

However, Germany, Britain and other G7 economies have not committed, potentially complicating the DSRB’s ambition to secure a triple-A credit rating and access cheaper funding. Analysts say backing from additional highly rated governments could strengthen the institution’s standing with ratings agencies.

Some prospective members have questioned whether the bank could provide financing more cheaply than governments that already enjoy low borrowing costs. Concerns also include upfront capital requirements, governance and possible duplication with existing defence financing programs.

The European Union launched its €150 billion Security Action for Europe (SAFE) program in 2025, while Britain is developing a Multilateral Defence Mechanism with the Netherlands, Finland and Poland. Larger countries have reportedly been asked to contribute around €1 billion to the DSRB.

Founder Rob Murray argues that the bank would provide a permanent mechanism for financing defence investment while supporting technology, manufacturing, skilled employment and stronger supply chains.

Canada is also seeking British participation. Prime Minister Andy Burnham has discussed the DSRB with Carney, while British and German defence industry groups have urged their governments to consider joining.

Around a dozen financial institutions, including JPMorgan and Deutsche Bank, have reportedly provided approximately $10 million in funding or services to support the DSRB’s establishment.

Ottawa is prepared to launch the defence bank with its existing supporters, with additional countries potentially joining later as governments worldwide increase military spending amid growing geopolitical and security concerns.