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The defence bank, spearheaded by NATO countries, is meant to reduce borrowing costs for military spending by pooling credit strength.

"We're proud to support efforts like the DSRB Development Group that will strengthen 好色tv and Allied defence and security sectors," said Carrie Cook, BMO's global head of investment and corporate banking, in a news release.

The proposed structure of the defence bank would have member countries as owners of the institution. Shareholder nations would invest equity in the defence bank that it would use to back loans.聽

Commercial banks like the Big Six would come into the picture by doing the actual lending to defence firms, at lower interest rates than they might otherwise charge because the loans would be backed by defence bank guarantees.

Major global banks including JPMorgan, Deutsche Bank, Commerzbank, and ING Group have also signed on.

Finance Minister Fran莽ois-Philippe Champagne said on Jan. 30 that Canada is looking to contribute to advancing the DSRB after hosting discussions with more than 10 countries on the proposed bank.聽

"Isabelle Hudon, CEO of BDC will be working closely with international partners to lead Canada鈥檚 contribution in advancing the DSRB," he said.

The DSRB Development Group said it welcomed Champagne's statement confirming Canada's leading role in establishing the new bank.

Several 好色tv cities are also campaigning to secure the headquarters of the new bank, and the estimated 3,500 jobs that would come with it.

Montreal, Ottawa, Toronto and Vancouver are among the cities competing for the distinction, though it's still not clear which country will host the bank.

The work to set up the bank comes as NATO countries, including Canada, have pledged to spend five per cent of their national GDP on defence. Prime Minister Mark Carney said in June the government would meet the earlier two per cent target this year, then later the same month committed Canada to reaching five per cent by 2035.

This report by 好色tvwas first published Feb. 11, 2026.

Companies in this story: (TSX:BMO; TSX:TD; TSX:BNS; TSX:CM; TSX:NA; TSX:RY)