Canadian cities offer new office space, incentives to host proposed defence bank

Royal Bank of Canada

18/06/2026 17:52

    * Five Canadian cities are vying to host bank amid
tariff-driven pressure on local economies
    * No major economy has publicly backed the project; Germany
and Britain step back
    * Montreal touts its aerospace and defence cluster to host
bank
    * Halifax and Vancouver pitch naval, transatlantic and
relocation advantages, possible tax incentives

    By Nivedita Balu
    TORONTO, June 18 (Reuters) - Five Canadian cities are
competing to host the headquarters of a proposed multilateral
defence bank, hoping to attract thousands of finance and other
jobs at a time of economic uncertainty.
Prime Minister Mark Carney, who has sought to raise Canada's
profile on the global stage and bring so-called middle power
countries together, announced in April that Canada would host
the Defence, Security and Resilience Bank. The bank aims to
raise $135 billion to fund defence projects, particularly in
countries that struggle to access cheaper finance.
Canada hopes the bank will let small and medium-sized defence
firms meet a surge in demand for weapons and other military
equipment, particularly since the Ukraine war, and argues that
other initiatives - including a European Union loan programme -
have not done enough. 
Now, Toronto, Montreal, Ottawa, Halifax and Vancouver want to
host the bank's headquarters.
 The cities hope for an economic boost after U.S. tariffs hit
the country's steel and auto sectors. But the bank's success
will depend on the number of countries that sign up to become
members, and no major economies have publicly committed to it so
far. Germany and Britain have distanced themselves from the
project. 
    Canada's finance ministry, which will decide which city
hosts the bank, says the country is working with allies and
partners to form a group of founding nations. Industry watchers
expect a decision on the bank's location in the second half of
the year, and more clarity on which countries will back it after
the NATO meeting in Ankara next month. 
    
    FINANCE CAPITAL OR MANUFACTURING HUB? 
Ontario says the bank would have access to a C$500 million
"Resilience Bond" to fund defence projects if Toronto, Canada's
largest city and financial center, is selected. The provincial
government said the bank would create 3,500 jobs directly and
indirectly employ thousands more. 
Majority French-speaking Montreal, considered the front-runner
by several industry sources Reuters interviewed, is home to
aerospace and defence companies, including aircraft maker
Bombardier. A non-profit development agency that works with the
government, Montreal International, says it will offer
lower-cost services to the bank during its launch.
Colton LeBlanc, Nova Scotia’s minister of growth and
development, is touting capital Halifax as an ideal base for the
bank, saying the province has the highest defence spending per
capita in the country, the country's largest naval base and is
home to about 140 defence and aerospace businesses. The province
could offer a payroll rebate program or a capital investment tax
credit to the bank to boost its chances of hosting it, LeBlanc
said. 
    Vancouver would offer a "concierge service office" to help
house and settle staff from the bank, said Bridgitte Anderson,
CEO of the Greater Vancouver Board of Trade. The city also has
office space downtown ready for the proposed bank, Anderson
said.
Ottawa has highlighted being home to major financial and
government entities including the Bank of Canada and the banking
regulator as well as 130 embassies as part of its pitch to host
the bank.
     

 (Reporting by Nivedita Balu in Toronto; Editing by Caroline
Stauffer and Deepa Babington)
 ((Nivedita.Balu@thomsonreuters.com ; +1-343-401-6776))