Bank of Montreal (BMO) has entered into a partnership with the Defence, Security and Resilience Bank (DSRB) Development Group, a multilateral institution that aims to create a permanent bank to finance defense and security projects for NATO members and allied nations. The partnership will allow BMO to provide deposit, lending and treasury services to DSRB members, opening a new client base in the defense and security sector and diversifying BMO’s commercial banking portfolio beyond retail and wealth management.
BMO’s involvement builds on its long‑standing role as the “Official Bank of the Canadian Defence Community.” The bank’s expertise in serving defense‑related clients positions it well to tailor its banking solutions to the unique needs of DSRB members. The partnership also aligns with the Canadian government’s support for the DSRB, which has engaged more than ten countries in discussions and is seeking a headquarters that could create roughly 3,500 jobs in Canada.
The DSRB Development Group is a time‑bound initiative that could license and become operational in under 20 months. BMO joins a cohort of global banks—including JPMorgan, Deutsche Bank, Commerzbank and ING Group—as well as Canada’s other “Big Six” banks, all of which have pledged support for the project. The collaboration is expected to reduce borrowing costs for defense spending by pooling credit strength and providing guarantees that enable commercial banks to finance defense firms.
BMO’s total assets stood at $1.5 trillion as of October 31, 2025, making it the seventh largest bank in North America by assets. The partnership is a strategic move to capture fee income from a niche, high‑barrier market and to strengthen BMO’s positioning in both U.S. and international markets.
Management highlighted the strategic fit of the partnership. Carrie Cook, Global Head of Investment & Corporate Banking at BMO, said, “As the Official Bank of the Canadian Defence Community, we’re proud to support efforts like the DSRB Development Group that will strengthen Canadian and Allied defence and security sectors.” Kevin Reed, President and COO of the DSRB Development Group, added, “We’re pleased to welcome BMO as a partner, supporting the collaborative efforts of financial institutions toward the establishment of the proposed Defence, Security and Resilience Bank.”
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