Canada Leads Effort to Launch €100 Billion Global Defence Bank

Prime Minister Mark Carney is leading an initiative to establish the Defence, Security and Resilience Bank (DSRB), a Canada-based multilateral institution designed to provide low-cost loans and guarantees for defence projects. The bank aims to raise €100 billion, comprising €20 billion in paid-in capital and €80 billion in callable capital, allowing nations to expand military investments without increasing public debt.

As of August 2026, nine countries have pledged support, including Canada, Albania, Belgium, Greece, Latvia, Luxembourg, Romania, Turkey, and Ukraine, securing approximately €5 billion in commitments. The DSRB is pursuing a triple-A credit rating to minimize funding costs, though some governments have raised concerns regarding governance structures and whether the bank can offer cheaper financing than sovereign borrowing.

Major G7 economies, including Germany and Britain, have declined to join, citing concerns over value for money and overlaps with existing initiatives such as the EU's SAFE programme and Britain's Multilateral Defence Mechanism. Despite the absence of these major powers, Canada is prepared to launch the bank with its current supporters. Officials are currently consulting with allies ahead of the signing of the founding charter scheduled for autumn 2026.