Ottawa announces planned defence bank to be headquartered in Canada

Canada has been selected to host a multinational bank to provide "long-term, low-cost financing" for defence projects by NATO members and allies, the federal government said Wednesday.

The Globe and Mail newspaper first reported the decision following the end of multinational negotiations earlier Wednesday that were hosted in Montreal.

A news release issued late Wednesday says the defence bank will allow member countries, including Canada, to leverage shared resources to "meet today’s defence challenges."

National Defence Minister David McGuinty, in the release, called it a "resilient and responsive defence industrial base — for Canada and our allies.”

A source with direct knowledge told The Canadian Press there's still a lot to discuss and sort through — and cautioned there's still a world in which it doesn't happen.

Toronto, Ottawa, Vancouver and Montreal are all competing to have the Defence, Security and Resilience Bank located in their jurisdictions.

Canada's Big Six banks have all put their support behind the proposed international defence financing vehicle, which would be aimed at lowering borrowing costs for military spending.

The Canadian Chamber of Commerce applauded the news, saying the defence industry is a major economic driver and will become a growing force as it attracts more investment.

“Canada is the right home for this new initiative," said David Pierce, vice-president of government relations at the Canadian Chamber of Commerce. "In a world where conflict is an ever-present concern, we are grateful our allies have seen the merit in this move."

Pierce said Canada's defence industry is an attractive partner, ready to lead on the world stage.

"Our world-class defence industry is a major driver in the economy right now, which will be a growing economic force as we increasingly invest in it," he said. "We hope to see more details and confirmation soon because it’s going to be all hands on deck to get this right."

Ontario Premier Doug Ford said on social media that the defence bank is an opportunity to put Canada at the centre of global defence finance and manufacturing.

"As our nation’s financial capital, with a skilled workforce and unparalleled global connectivity, there’s no better place for the bank to be headquartered than Toronto," said Ford. 

Picture Courtesy: THE CANADIAN PRESS/Nathan Denette