Canada’s largest bank is stepping onto the world stage in a big way. The Royal Bank of Canada (RBC) will work alongside some of the biggest names in global finance to help create the Defence, Security and Resilience Bank (DSRB) — a new international lender designed to boost defence investment among NATO members and allies.
The initiative, modeled after the World Bank, is expected to have 40 shareholder nations and aims to be up and running by late 2026. Its mission? To support large-scale defence projects and help member countries meet NATO’s rising spending requirements.
A collective effort
RBC won’t be alone in the venture. Major global institutions including JPMorgan Chase & Co. in the U.S., ING Group NV in the Netherlands, and Germany’s Commerzbank AG and Landesbank Baden-Württemberg are already on board.
“I think it’s a great representation for Canada,” said Kevin Reed, president of the DSRB Development Group. “RBC is a great global bank, and so for them, when the (DSRB) gets stood up, they will be one of the front-of-the-line banks to offer services. It should put Canada in a great spot as we start to gather member nations.”
According to the DSRB, participating banks will be tasked with mobilizing investor capital and creating a “resilient financial architecture” to ensure the institution has both market trust and technical credibility from day one. Their role will include advising on capital structure, investor outreach, credit ratings, and risk management — all aimed at unlocking private capital quickly and effectively.
This move comes as NATO pushes its members to significantly boost defence spending. The current target is 2% of GDP, with an anticipated increase to 5% by 2035. Canada, which was tracking at 1.37%, has pledged to meet the 2% goal this year.
Creating discourse
The DSRB will hold its first official meeting in September, where key questions — including the bank’s headquarters location and its first president — will be discussed.
“I think Canada has a chance if it so desires to put its hand up to say, Canada would like to house it,” Reed said, noting that a Canadian headquarters could create as many as 4,000 jobs.
Costs & benefits
If approved, shareholder nations are expected to contribute US$65–70 billion in capital, positioning the bank for a triple-A credit rating. This would allow it to raise additional funds through the bond market, in turn expanding lending capacity for defence projects.
Reed explained that while the DSRB will primarily serve its member countries, the benefits will be especially valuable for nations without a triple-A rating, giving them access to lower-cost loans. It will also open the door for commercial banks to engage with defence-related businesses that have traditionally been out of bounds.
“If you are a bank and you haven’t been able to lend into a company that builds drones that will have capability for armaments, this credit guarantee will allow banks to start to lend into the defence category,” Reed said.
With billions in capital, a roster of heavyweight financial backers, and the potential to reshape global defence financing, the DSRB could mark a new chapter for Canada’s role in international security — and for RBC’s presence on the world stage.
