Canada has been selected as the host country for a multinational bank designed to help NATO members and allies fund defence projects, the Department of Finance said.

The Defence, Security and Resilience Bank (DSRB) will provide the countries with “long-term, low-cost financing for defence, security, and resilience initiatives across supply chains.”

The announcement comes after negotiations in Montreal.

“Canada is taking decisive action to strengthen our collective defence and security alongside our partners,” Defence Minister David McGuinty said in a news release. “This initiative will enable faster, more targeted investments, strengthen critical capacity, and support a more resilient and responsive defence industrial base —for Canada and our Allies.”

Toronto, Ottawa, Vancouver and Montreal are all believed to be competing to host the bank in their cities.

On Wednesday, Ontario Premier Doug Ford hailed the announcement as an “opportunity to put Canada at the centre of global defence finance and manufacturing.”

“As our nation’s financial capital, with a skilled workforce and unparalleled global connectivity, there’s no better place for the bank to be headquartered than Toronto,” he posted on X.

The Canadian Chamber of Commerce said the bank can drive economic investment across Canada.

“Canada is the right home for this new initiative,” said David Pierce, vice-president of government relations at the Canadian Chamber of Commerce said in a statement to The Canadian Press. “In a world where conflict is an ever-present concern, we are grateful our allies have seen the merit in this move.”

  • Halifax company helps build virtual training twins of Canada’s new navy destroyers
  • Algoma Steel inks joint venture to supply steel for defence

While the government has hailed the announcement as an “important first step” a source told The Canadian Press that it is still possible the bank never gets off the ground.

With files from The Canadian Press