Global defence lender bid could bring 3,500 skilled jobs and fresh capital flows to bay street
Toronto is angling to host a World Bank-style defence lender that could anchor more than 3,500 skilled jobs and a new stream of security-focused capital flows in the city’s financial core, according to BNN Bloomberg.
The proposed Defence, Security and Resilience Bank (DSRB) would be a multinational institution set up by European and Indo-Pacific countries to finance defence, security and resilience projects for about 40 democratic nations.
CBC News says the bank would provide long-term credit and help countries jointly procure defence assets.
Ontario Premier Doug Ford and Toronto Mayor Olivia Chow have launched Toronto’s formal bid, positioning the city as Canada’s strongest contender based on its financial depth, talent pool and global connectivity, as reported by BNN Bloomberg.
A news release from Ford’s office, cited by both outlets, says the DSRB headquarters is expected to create more than 3,500 jobs.
For capital markets and financial firms, the key argument is Toronto’s infrastructure.
Government officials point out that the city hosts all five major Canadian banks and 40 foreign banks.
Chow told reporters that Toronto is home to industry leaders in finance, AI and cybersecurity, and described it as “Canada’s financial capital, the beating heart of our country’s financial industry.”
BNN Bloomberg notes that officials also highlight Toronto’s concentration of defence-adjacent sectors such as aerospace, AI, cybersecurity, quantum, robotics, space technologies and advanced manufacturing.
They also point to the presence of 107 consulates and a rules-based environment within a G7 and NATO member state.
The bid has backing from close to 170 partners, including major banks, telecoms, universities and legal and consulting firms.
DSRB Development Group president Kevin Reed, who is overseeing the bank’s creation, said Canada is “in a good spot” heading into the selection process, BNN Bloomberg reports.
He said Pacific-region countries prefer a North American host and that some European views may tilt toward Canada due to NATO discussions.
CBC News reports that negotiations with about 12 principal member nations to finalize the bank’s governance are under way, with an update on the host-country decision expected in early January.
If Canada is chosen, Prime Minister Mark Carney would decide which city hosts the headquarters, with that decision potentially coming in the first quarter of 2026.
Montreal is also in the running, and Ottawa has expressed interest, but Ford has argued Toronto is the only serious Canadian option if the country wants to win the bid, BNN Bloomberg reports.
Reed has also pointed to leadership as a differentiator, saying Canada stands out because Carney “understands better than other most world leaders, what a multilateral bank can do on a multiplier effect for the economy.”
CBC News quoted him similarly: “Our prime minister understands better than other, most world leaders what a multilateral bank can do, on a multi-layer effect, for the economy.”
The bid coincides with Ottawa’s creation of a Defence Investment Agency to speed up and coordinate military procurement, suggesting defence-related finance and infrastructure are moving higher on Canada’s policy and capital agenda.
