Department of Finance Canada said multilateral negotiations on the charter for the Defence, Security and Resilience Bank had concluded in Montreal.
The proposed bank would provide long-term, low-cost financing for defence, security, and resilience initiatives across supply chains.
The financing model is intended to serve small and medium-sized enterprises as well as member governments facing capital gaps connected to defence production and resilience needs.
The proposal sits beside direct federal defence spending. Budget 2025 included more than $80 billion in defence investments, alongside the Canadian Defence Industrial Strategy.
Canada had reached the NATO 2 per cent of GDP spending target in the fiscal year and was on a path toward the NATO Defence Investment Pledge of spending 5 per cent of GDP on defence by 2035.
The policy distinction is financing versus spending. A bank structure can offer loans and mobilize private capital, while a budget appropriation spends public money directly.
If the bank is established, the public-finance question will be how risks, guarantees, lending terms, and repayment obligations are shared among member governments, private investors, and defence-sector borrowers.