Canada aims to announce 10 countries backing global defense bank at NATO summit

ANKARA/LONDON — Canada aims to announce about 10 founding member countries for a proposed global defense bank during next week's NATO summit in Ankara, Türkiye, as it seeks to strengthen allied defense financing amid growing geopolitical tensions.

The proposed Defence, Security and Resilience Bank (DSRB) is being promoted by Canadian Prime Minister Mark Carney as part of a broader effort to deepen cooperation among middle powers in response to what he describes as a changing global order.

Isabelle Hudon, Canada's chief negotiator for the initiative and chief executive officer of the Business Development Bank of Canada, said the goal is to unveil the initial list of founding members during the summit, although final participation remains subject to ongoing negotiations.

The DSRB aims to raise up to £100 billion ($133 billion) in low-cost financing to support defense investments among allied nations.

Hudon said the first group of participating countries is expected to consist primarily of European nations, alongside Canada. While she declined to identify the countries involved, she said the initiative has gained momentum and will remain open to additional members after its launch.

The project's long-term success, however, will depend on securing support from enough major economies to achieve a strong credit rating, which would allow the bank to borrow funds at lower costs.

Canada has also held discussions with South Korea, which is still reviewing the proposal. Hudon said there remains a possibility that Seoul could join at a later stage, although no other Group of Seven (G7) countries are close to signing on for now.

So far, Luxembourg is the only country that has publicly confirmed its participation and will serve as the bank's European base.

Analysts say the NATO summit will be a key test of whether the initiative can attract enough backing to move forward. The DSRB also faces competition from existing European defense financing efforts, including the European Union's SAFE program.

According to Hudon, one of the biggest challenges is determining each country's capital contribution. Participating nations are expected to contribute based on the size of their economies, with Canada potentially providing up to €1.5 billion ($1.7 billion), while smaller member states could contribute between €500 million and €750 million.

The United Kingdom has so far opted not to join the DSRB, instead pursuing its own defense financing initiative with the Netherlands and Finland. However, discussions have taken place on whether the two projects could eventually be aligned or merged.

Germany has also taken part in discussions as an observer while reviewing the proposal. Other countries, including Italy, Spain, Türkiye, Belgium, and Ukraine, have also examined the initiative, according to sources familiar with the matter.

The DSRB was proposed in 2024 by a group of former NATO security advisers, retired military officials, and banking executives as allied nations face increasing defense spending requirements driven by the war in Ukraine, heightened tensions with Russia, and China's growing military capabilities.

NATO leaders agreed in 2025 to increase defense and security-related spending to 5% of gross domestic product (GDP) by 2035.

Hudon said Canada is not expected to announce the bank's headquarters during next week's summit. Five Canadian cities—Toronto, Montreal, Ottawa, Halifax, and Vancouver—remain under consideration.

Several major financial institutions have joined the initiative, including JPMorgan, Deutsche Bank, Commerzbank, ING, Royal Bank of Canada (RBC), Bank of Montreal (BMO), Canadian Imperial Bank of Commerce (CIBC), National Bank of Canada, Scotiabank, and TD Bank. -Reporting by Jonathan Spicer in Ankara and Iain Withers and Marc Jones in London, Additional reporting by Caroline Stauffer, Andrew Gray, Promit Mukherjee, Maria Cheng, Maria Martinez, Elizabeth Piper, Giuseppe Fonte, Anthony Deutsch, Jihoon Lee, Jan Strupczewski, Jesus Aguado, Lili Bayer; Editing by Rod Nickel/Reuters