Why Canada is a logical home for a new allied defence bank

The specifics, including how much each member state will invest in the DSRB, are still being developed. And Canada is taking a leading role in these discussions; in recent weeks, all of Canada’s “Big Six” banks signed on as formal supporters. Global negotiations on the location of the DSRB’s headquarters are expected to begin in March, and Canada is a strong contender to host. Canada’s capabilities on the world stage have been in question for years, perhaps most clearly shown by Ottawa’s failed bids for a seat on the UN Security Council in 2010 and 2020. But our strengths shouldn’t be overlooked, either. Canada sits at a unique crossroad of finance and security. It is a founding member of NATO, one of the Five Eyes intelligence partners, and a G7 economy. It is deeply integrated into the North American defence industrial base through NORAD and longstanding supply chain connections with the United States. It is expanding its relationships across the Indo-Pacific and has a natural and growing focus on Arctic security. Very few countries simultaneously bridge the Atlantic, Pacific, and Arctic theatres as directly as Canada. Canada offers several credible locations for the DSRB headquarters. A global financial hub, Toronto provides access to advanced capital markets, sophisticated pension funds adept at long-term investing (including some of the world’s largest institutional investors in infrastructure), and a highly skilled talent pool. Montreal offers proximity to world-class aerospace, cybersecurity, and AI research communities, and access to francophone allies. Vancouver provides a strategic Pacific gateway, strong ties to Asian allies, and a critical minerals finance network. Each city brings substantial institutional and geographic advantages; any of them would be an excellent home for the DSRB. The benefits to Canada would be substantial. Beyond the estimated 3,500 jobs the bank would create, hosting the DSRB would deepen integration between Canadian firms and allied supply chains in key sectors. This would embed Canada’s financial institutions in the capital flows that will define the next generation of Western industrial policy. And it would signal that Canada intends to shape, not just follow, the evolving security architecture of democratic economies. Critics may point to Canada’s long-standing failure to meet NATO’s defence spending targets. This is a valid concern; allies may reasonably question whether a country that has historically underinvested in defence should host a major security-focused financial institution. But hosting the DSRB is not a substitute for meeting defence commitments, it is complementary. It would insert Canada more deeply in allied capital flows and accountability mechanisms, reinforcing the domestic momentum for higher and sustained defence spending. And international credibility is shaped by more than defence spending. Canada consistently scores highly on global rankings for rule of law, financial transparency, and political stability. As we currently see on the issue of trade, in the current geopolitical climate, Canada is emerging as a strong convener of middle powers. These are precisely the institutional qualities needed to govern a complex multilateral initiative such as the DSRB. Furthermore, the DSRB’s mandate extends beyond traditional military expenditure. Modern resilience includes areas where Canada has demonstrable strengths: world-leading energy exports, vast critical mineral reserves, and advanced research capabilities. Thus, Canada’s economy is already deeply integrated into many of the sectors the DSRB will prioritize, making the country a credible host with the capabilities needed to scale allied resilience. Globally, capital allocation is being reorganized around geopolitical risk, and democracies are experimenting with new tools to finance security without sacrificing market principles. Going forward, Canada can either remain a participant in institutions created elsewhere or step forward as a convening power. Hosting the DSRB in Toronto, Montreal, or Vancouver will not erase Canada’s past underinvestment in defence. It will, however, signal that Canada is prepared to align its financial architecture with the strategic realities of the times. If Ottawa is ready to match ambition with commitment, the case for Canada is not merely defensible, it is strategically sound.