Canada to Host NATO Defence Financing Bank

Canada has been chosen to host a new multinational bank aimed at financing defence projects for NATO members and allies, following negotiations that concluded in Montreal on Wednesday.

A person with direct knowledge of the talks confirmed the decision, though they noted significant details remain to be resolved and cautioned that the arrangement could still fall through. The Defence, Security and Resilience Bank would focus on providing lower-cost loans to companies in defence and security sectors, which traditional lenders often deem too risky. The initiative is backed by a group of NATO allies responding to increased military spending across the alliance.

The negotiations involved representatives from more than a dozen founding countries and were hosted in Montreal. Isabelle Hudon, president and chief executive of the Business Development Bank of Canada, led the Canadian delegation. A final decision on the bank's location within Canada is pending and rests with the federal government. Toronto, Ottawa, Vancouver and Montreal are vying for the headquarters.

Canada's major banks have expressed support for the bank, viewing it as a tool to reduce borrowing costs for...