New defence bank aimed at increasing NATO military spending could bring 3,500 jobs to a Canadian city
At least five Canadian cities are vying to host a new defence-oriented world bank that could create up to 3,500 jobs, the National Post has learned.
Vancouver, Halifax, Toronto, Ottawa and Montreal are all in the running to host the headquarters of the Defence, Security and Resilience Bank (DSRB), according to a well-placed source.
The DSRB, to be established by the end of 2026, will serve 40 member countries, which include NATO members and their Indo-Pacific allies.
“If the vote were today, the headquarters would be here (in Canada),” the source said Wednesday. “The vote won’t be until mid-January or February.”
Months ago, London, England, appeared to be the “natural choice” for the DSRB headquarters, said the source. “But the government in the U.K. has been in such disarray that they can’t even organize a one-car funeral. They were given a gift: do you want this? They never said no. But they couldn’t say yes.”
The city that gets the bank’s headquarters will need to be close to embassies, demonstrate the ability to recruit top talent in financial services, and supply buildings that can house the facility.
“Toronto, Montreal and Ottawa all have those capabilities,” said the source.
“This will become a decision of the prime minister and cabinet.”
Officials behind the DSRB had recent discussions with the business development agency Invest Nova Scotia about headquartering the bank in Halifax, said the source. “They were very supportive, and they were going to work with the premier.”
Vancouver also put their hand up, said the source, as did the City of Montreal.
Toronto is expected to announce next week that it, too, is vying for the DSRB headquarters, said the source.
Toronto City Councillor Brad Bradford wrote a public letter to Prime Minister Mark Carney advocating for Toronto as the ideal location for the headquarters.
“Toronto is the economic engine of Canada’s economy,” Bradford wrote in his letter, dated Dec. 10. “Our city produces roughly one fifth of the national GDP and anchors the country’s financial system. The institutions that finance the energy systems, logistics infrastructure, and digital networks of the DSRB will support (operations) here. Establishing the headquarters in Toronto puts the Bank in the necessary proximity to the vital partners it will need to attract capital and structure complex, multi-year investments.”
Retired general Rick Hillier, a former chief of the Canadian defence staff — who is on the board of the DSRB — was named as honourary chair Wednesday of the National Defence Innovation Hub Task Force for Canada’s Capital Region.
“As part of this work, the Task Force will guide the region’s official bid to host the Global Defence & Security Resilience Bank (DSRB) headquarters, a diplomatic institution that will mobilize critical capital, strengthen sovereign capability, and reinforce the resilience, security, and economic strength of allied nations,” said a press release from Invest Ottawa, which bills itself as the lead economic development agency for knowledge-based industries in Canada’s Capital Region.
Ottawa Mayor Mark Sutcliffe and Gatineau Mayor Maude Marquis-Bissonnette issued a joint statement Wednesday on the matter. “We welcome the opportunity to host the DSRB and formally invite anchor nations to convene the bank’s charter negotiations in Ottawa-Gatineau when they commence in 2026,” it said.
“We would be honoured to host this once-in-a-generation gathering and the headquarters of the DSRB. Canada’s National Capital Region is fully committed to supporting the DSRB’s global success.”
Hillier’s “leadership and experience will be invaluable as we accelerate our Defence Innovation Hub Strategy here in the Capital Region, together with our partners from Gatineau, and build on the success of more than 300 companies in the defence sector in our region” Sutcliffe said in a news release. “Hosting the Defence, Security & Resilience Bank would be a game-changer for our city and our country, bringing billions in investment, creating high-quality jobs, and reinforcing Canada’s role on the world stage. Ottawa and Gatineau have the opportunity to lead Canada’s efforts at building a stronger, more sovereign defence sector.”
Announced this past spring, the DSRB could solve financial problems for countries, including Canada, that are under pressure to increase military spending.
The bank will be owned by its member nations, which would capitalize the bank so it would get a triple-A rating it could take to the bond market to raise money.
The theory is the bank would allow Canada and other countries to re-arm in the face of Russian and Chinese aggression.
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