Toronto, Ontario bid to be potential Canadian host for new international defence bank

Ontario is throwing its weight behind a high-stakes pitch for Toronto to be selected as a potential host city for a massive new international defence institution, which will finance military projects for NATO members and their allies.

Ontario Premier Doug Ford, Toronto Mayor Olivia Chow and many representing the city’s financial district gathered at the Toronto Stock Exchange, in the centre of the financial district, on Wednesday to launch a bid to host the Defence, Security and Resilience Bank.

The DSRB is designed to serve as an incubator to finance defence projects for a coalition of allied nations, as European powers, in particular, begin ramping up military spending in the wake of Russia’s invasion of Ukraine and political shifts in the United States.

The bank said in a statement last week that it is designed to complement the European Union’s SAFE initiative and bring together countries from both NATO and the Indo-Pacific.

The project is envisioned to be a combination of defence, security, innovation and finance to unlock new military spending.

According to the DSRB, several countries have indicated their interest in hosting it once it launches. If Canada were to be selected, Montreal and Toronto are vying to be the ultimate destination.

A joint pitch from the City of Toronto and the government of Ontario, released Wednesday, argued the provincial capital was best placed to host the bank as the nation’s financial centre.

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It also pointed to Toronto Pearson International Airport’s status as the nation’s air travel hub, high-ranking universities and the area’s technology sector.

The bid unveiled on Wednesday is ultimately targeting the federal government. It is Prime Minister Mark Carney’s team that will put forward Canada’s pitch to be selected as the bank’s destination and decide whether or not Toronto is its preferred location.

The bank itself has not yet launched, but its leadership team has been holding meetings around the world.

“The road to its establishment is paved with intricate decisions and significant coordination among nations at the highest political levels, but with a clear vision and strategic execution, it could play a critical role in strengthening Allies collective defense for the foreseeable future,” its website explains.

It is aiming to begin operations “in or around” 2027.