Toronto wants to host new bank supporting Canada, allies’ military

Toronto hopes to house the headquarters of a multinational bank funding defence and security initiatives of democratic countries.

Ontario premier Doug Ford and Toronto Mayor Olivia Chow announced the city’s bid to host the Defence, Security and Resilience Bank (DSRB) on Wednesday.

Canada is one of several countries being considered to host the international bank that would serve about 40 countries by financing security needs.

“When I heard Canada was being considered for this bank, I thought there is no better location than Canada's financial capital, the beating heart of our country's financial industry right here in Toronto,” Chow said at a news conference at the TMX Market Centre in Toronto.

Business and Indigenous leaders attended the announcement along with several politicians. Chow said Toronto is home to industry leaders in finance, AI, cybersecurity and policy, which would be an asset to the bank.

“Toronto gives Canada its best chance to succeed,” she said.

The decision about which country will host the DSRB headquarters is expected to come in early January following negotiations with around 12 principal member nations to decide on the bank's governing framework, according to the bank’s president, Kevin Reed. But Reed said Canada is well-positioned to be chosen.

“Our prime minister understands better than other, most world leaders what a multilateral bank can do, on a multi-layer effect, for the economy,” Reed said.

“So it's not certain, but I think we're in a good spot going into those negotiations,” he said.

If picked, Prime Minister Mark Carney will decide which city it will be located, Reed said, adding the decision could come in the first quarter of 2026.

Bank to create over 3,500 jobs

The headquarters is expected to create over 3,500 jobs, according to a news release from Ford’s office. Politicians and business leaders in other Canadian cities have also expressed interest in hosting the bank, including Montreal and Ottawa.

The city that hosts the DSRB will become a “hub” of global defence innovation, Ford said at the news conference.

“The benefits of the bank won't just be felt in one city or one province,” said Ford on Wednesday. “If Toronto is selected as a host city, every part of the country will be better off.”

Ford said the city has “everything the bank needs,” which he said includes a capable workforce, postsecondary institutions and headquarters of other financial institutions. He also said the city is well connected internationally.

“I know we have everything we need right here to make the bank a success,” Ford said.

The DSRB is being established by a group of European and Indo-Pacific countries, according to the release from Ford’s office. It would follow a similar model to the World Bank and would offer services to around 40 countries, the release says.

The bank’s services would include providing long-term credit and helping to streamline the process of multiple countries buying defence resources together, the release says.

“If Canada, as a nation, would like to borrow directly from this bank, [and] it's outside the budgeting cycle for a naval port in the Arctic, it could do that, as would other member nations,” Reed said as an example at the conference.

The bid to host the bank comes weeks after the federal government announced the creation of a Defence Investment Agency (DIA) to speed up and coordinate the delivery and purchase of military equipment in Canada.