Defense, Security and Resilience Bank (DSRB)

Defence, Security and Resilience Bank (Defence, Security and Resilience Bank, DSRB) is a multilateral international financial institution proposed to provide long-term and low-cost financing for defence, security and supply chain resilience investments by allied and partner countries. The bank’s concept was first introduced in 2024 by a group composed of former NATO security advisors, senior retired military personnel and bankers.^【1】 The institution is expected to be established in Canada with its headquarters located in that country.

The institutionalization process of the DSRB initiative has progressed through several stages, from the selection of a candidate city to multilateral charter negotiations and member country commitments.

• December 17, 2025: The government of Ontario officially announced its candidacy for Toronto to host the bank’s headquarters while awaiting the decision of the Canadian federal government as host country. The candidacy is based on Toronto’s status as Canada’s largest financial centre and its hosting of the five major Canadian banks and over forty foreign banks.^【2】
•  February 2, 2026: Canada’s Minister of National Defence and Minister of Finance and National Revenue held a roundtable meeting with leading Canadian financial institutions and confirmed the Canadian government’s public support for the DSRB initiative.^【3】
• February 17, 2026: The Prime Minister of Canada launched the Canadian Defence Industry Strategy, which aims to transform defence industrial supply chains under the Build-Partner-Buy framework.^【4】
• April 29, 2026: Multilateral negotiations on the DSRB charter were completed in Montreal. The participating countries unanimously supported Canada, the host of the negotiations, to serve as the future headquarters of the bank following ratification of the charter. The chief representative of Canada during the negotiations was Isabelle Hudon, President and Chief Executive Officer of the Business Development Bank of Canada (BDC).^【5】
• May 12, 2026: Following Canada’s selection as host country, the government of Ontario and the city of Toronto reaffirmed their support for locating the bank’s headquarters in Toronto. The initiative is projected to generate approximately 3,500 direct skilled jobs in Toronto.^【6】
• July 7, 2026: During the 36th NATO Summit of Heads of State and Government held in Ankara, Canadian Prime Minister Mark Carney announced that nine countries including Canada support the DSRB. Participating countries were invited to ratify their commitments domestically; the bank is targeted to become operational in 2027.

The purpose of DSRB is to provide long-term and low-cost financing for defence, security and resilience initiatives across supply chains and to help close financing gaps faced by small and medium-sized enterprises and member governments. ^【7】

The institution is positioned as a complementary financing instrument to existing national defence budgets; it is defined as a long-term financing mechanism that enables member countries to strengthen their defence capabilities without compromising their national budgets or fiscal constraints.^【8】

DSRB may require interoperability as a condition for projects it finances and thereby contribute to reducing equipment incompatibility among allied armed forces. The bank aims to provide defence industry suppliers with long-term predictability through contracts of 15 to 30 years, thereby reducing unit costs.^【9】

Unlike the joint debt liability model of eurobonds, in DSRB each member state is responsible only for its own commitments, while all members benefit from the bank’s collective credit rating and market access. Member states’ equity contributions are expected to be recorded as assets on national balance sheets and included in NATO’s defence spending targets measured as a percentage of gross domestic product.

The bank aims to mobilize up to 100 billion pounds sterling (approximately 134 billion dollars) in low-cost financing to strengthen allied defence capabilities. ^【10】NATO member countries, with the exception of those like Germany with an AAA credit rating, face higher borrowing costs. ^【11】 The bank aims to achieve an AAA credit rating, enabling it to offer low-interest loans to countries and companies struggling with access to affordable financing and to provide credit guarantees to private banks.^【12】

DSRB’s institutional partners include international banks such as JPMorgan, Deutsche Bank, Commerzbank and ING, as well as Canadian-based institutions: RBC, BMO, CIBC, National Bank of Canada, Scotiabank and TD Bank.^【13】

On July 7, 2026, nine countries expressing support for DSRB were announced:

^{Countries Supporting DSRB (Generated by Artificial Intelligence.)}

•     Canada (host country)

•     Albania

•     Belgium

•     Greece

•     Latvia

•     Luxembourg

•     Romania

•     Türkiye

•     Ukraine^【14】

Among these countries, no G7 member exists other than Canada; this is viewed as a factor that could limit the bank’s financial strength. ^【15】Canada’s Minister of Foreign Affairs Anita Anand stated that the bank will remain open to new members.

United Kingdom and Germany initially adopted a cautious stance toward the project; however, United Kingdom Finance Minister Rachel Reeves stated in a parliamentary address in June 2026 that her government is “working closely” with Canada on DSRB.^【16】 The United Kingdom is also pursuing its own multilateral defence financing initiative, to which Poland has joined following the support of the Netherlands and Finland.

Türkiye’s defence and aerospace exports have exceeded 11 billion dollars over the past 12 months.^【17】 Under the coordination of the Defence Industry Agency, an ecosystem of over 4,000 companies is managing more than 1,400 projects simultaneously. As an indicator of the sector’s high-tech production capacity, export value per kilogram has reached 40 times the Turkish average. Approximately 56% of total exports have been directed to NATOcountries.^【19】

Minister of National Defence Yaşar Güler stated that NATO has entered a new phase and that the alliance’s credibility depends on translating political commitments into concrete military capacity, munitions and logistics. Minister Güler emphasized that burden-sharing must be assessed not only by budget figures but also by operational risk, geographic location, preparedness level, mission contributions and industrial capacity. Güler stressed the need for NATO to maintain a 360-degree comprehensive security approach and highlighted that Türkiye maintains a large, professional and active military force, offering the alliance a strategic advantage through its operational experience.

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Over the next three years, Türkiye will prioritize air and ballistic missile defence, long-range fire power and unmanned systems. The core approach in the defence industry has been defined as cooperation over competition, joint production over exclusion and class-based collaboration over restrictions. Türkiye aims to integrate its national defence industry assets to fill NATO’s capacity and production gaps.^【21】

Canada’s Prime Minister’s Office announced on July 7, 2026 that Türkiye is among the nine countries declaring “common intent” to establish DSRB.^【22】Türkiye has not yet announced a final decision on its participation in the bank as of July 11, 2026. Ankara continues to assess the financial, strategic and industrial dimensions of joining a NATO-linked financial initiative.^【23】 Turkish officials are conducting this assessment in alignment with national security priorities and long-term economic interests. Under this framework, Türkiye’s final position regarding DSRB participation remains undetermined as of the date of this report.

The announcement of support from nine countries regarding DSRB coincided with the 36th NATO Summit of Heads of State and Government held in Ankara on July 7–8, 2026.

Germany Chancellor Friedrich Merz announced that Germany will double its defence spending over four years while defending its NATO defence expenditure commitments. NATO allies, at the request of the United States of America, agreed to raise their spending on core defence items such as weapons and troops to 3.5% of GDP by 2035, exceeding the alliance’s previous 2% target.^【24】

^{Mark Rutte's NATO speech (}AA⁾

Türkiye Minister of National Defence Yaşar Güler, in his speech on July 7, 2026, welcomed the increased defence spending commitments among NATO allies but emphasized that spending increases alone will not generate deterrence; they must be translated into trained personnel, ready forces, munitions, robust logistics and industrial capacity. ^【25】

Defence Industry Agency of Türkiye stated on July 8, 2026 that approximately 56% of its defence and aerospace exports, which exceeded 11 billion dollars in the past twelve months, were directed to NATO member countries.^【26】

DSRB is being pursued as a distinct initiative separate from existing European Union defence financing mechanisms. The European Union’s defence financing structure includes instruments outside the EU budget such as the European Defence Agency (EDA) and the European Peace Facility (EPF), and programs within the EU budget such as the European Defence Fund (EDF). The European Defence Fund has a budget of approximately 7.3 billion euros for the period 2021–2027 and supports cooperative defence research and development projects among member states.^【27】 DSRB positions itself not as a competitor but as a complementary instrument to European Union programs such as SAFE and ReArm; while these programs support demand-side needs, DSRB aims to provide long-term financing on the supply side to enhance industrial capacity.

It has been confirmed that the bank will be established in Canada, but the specific city hosting the headquarters remains undetermined as of the publication date. Alongside the candidacy of Toronto, supported by the government of Ontario, other cities under consideration include Halifax, Montreal, Ottawa and Vancouver.Ontario Finance Minister Peter Bethlenfalvy stated that Toronto offers the financial expertise, institutional capacity and global connectivity required by a multilateral institution such as DSRB.^【28】