# Canada's defence finance ties – DSRB expansion > Live situation record from CLSTR: https://clstr.news/situations/canadas-deepening-defence-finance-ties > Updated: 2026-07-28T22:30:14.000Z. Sources: 30. Developments: 9. Following the EU Council’s approval of Canada’s accession to the SAFE programme, Canada helped launch the Defence, Security and Resilience Bank (DSRB) at the NATO summit in Ankara on 8 July 2024. The bank, headquartered in Canada with a European hub in Luxembourg, aims to mobilise up to £100 billion of low‑cost credit for defence, security and resilience projects targeting governments and smaller defence firms lacking private‑sector financing. Turkey declined to join at that stage, while the United Kingdom, Germany and France continue to operate separate procurement mechanisms. The DSRB is intended to complement NATO’s broader re‑armament push, support Ukraine’s war economy and help allies reach the 5 % of GDP defence‑spending target by 2035. In July 2026 NATO leaders revisited the DSRB as a financing tool for long‑term re‑armament, and the United Kingdom announced a review of potential membership to access capital for its goal of a 3.5 % defence budget by 2035. On 28 July 2026 a group of nine NATO members – Albania, Belgium, Canada, Greece, Luxembourg, Latvia, Romania, Turkey and Ukraine – announced plans to formalise the DSRB, with Luxembourg lobbying for the bank’s headquarters. The same day Canada pledged to raise its overall defence spending to 5 % of GDP by 2035, up from just over 2 % in 2026. The increase will be split between a 3.5 % core defence component (including F‑35 fighters, Arctic patrol vessels and personnel readiness) and a 1.5 % allocation for defence‑adjacent sectors such as aerospace manufacturing, cybersecurity, AI firms and critical‑mineral supply chains. Canada met the NATO 2 % defence‑spending benchmark in March 2026 and, after the Hague summit, committed to the Alliance‑wide 5 % target, representing roughly US$139 billion of additional defence outlays. ## Claims - Canada will increase defence spending to 5% of GDP by 2035. (corroborated by 3 sources) - Canada met NATO’s 2% of GDP defence spending target in March 2026. (corroborated by 2 sources) - Canada’s current defence spending system is inefficient at converting funds into modern, ready capability. (corroborated by 2 sources) - Canada has domestic resources of titanium, niobium and graphite that are strategic for defence applications. (single source) - NATO members, including European countries and Canada, increased defence budgets by about 20% in a year, totaling roughly $139 billion. (single source) - NATO is moving toward a “NATO 3.0” model that shifts greater conventional‑defence responsibility to Europe and Canada. (single source) - Canada plans to invest in advanced materials and defence‑related research and development to support military modernization. (single source) ## Timeline ### 2026-07-28: Canada pledges to raise defence spending to 5% of GDP by 2035 Canada aims to lift defence spending to 5 % of GDP by 2035, with 3.5 % for core defence and 1.5 % for adjacent sectors, after meeting NATO’s 2 % target in 2026. NATO’s “3.0” shift puts more conventional‑defence 4 sources. https://clstr.news/cluster/canada-sets-goal-to-boost-defence-spending-to-5-of-gdp-by-2035 ### 2026-07-28: NATO Defense Bank Initiative Gains Momentum with Luxembourg Seeking Headquarters Nine NATO members and Ukraine plan a Defense, Security and Resilience Bank to fund arms and modernization, with Luxembourg pushing for its headquarters. 2 sources. https://clstr.news/cluster/nato-defense-bank-initiative-gains-momentum-with-luxembourg-seeking-headquarters ### 2026-07-26: UK to Join NATO Defence Bank to Fund Defence Spending The UK is weighing joining the NATO Defence, Security and Resilience Bank to secure funding for its goal of raising defence spending to 3.5% of GDP by 2035, with finance minister John Healey emphasizing the aim 2 sources. https://clstr.news/cluster/uk-to-join-nato-defence-bank-to-fund-defence-spending ### 2026-07-23: NATO proposes Defense, Security and Resilience Bank to fund long‑term rearmament NATO is introducing a Defense, Security and Resilience Bank to finance sustained rearmament, a move critics say could entrench permanent military spending amid rising geopolitical tensions. 2 sources. https://clstr.news/cluster/nato-proposes-defense-security-and-resilience-bank-to-fund-longterm-rearmament ### 2026-07-09: NATO sees new $50 bn long‑range strike fund and €100 bn defence bank proposals The UK proposes a $50bn NATO long‑range strike fund, while Canada leads a new Defence Security and Resilience Bank aiming to mobilise up to £100bn for NATO re‑armament; major European states remain absent, pref 2 sources. https://clstr.news/cluster/nato-sees-new-50-bn-longrange-strike-fund-and-100-bn-defence-bank-proposals ### 2026-07-08: NATO allies launch Defence, Security and Resilience Bank Nine NATO members and Ukraine plan a Defence, Security and Resilience Bank, headquartered in Canada, to mobilise up to $134 billion for low‑cost defence financing, launching in 2027. 8 sources. https://clstr.news/cluster/nine-nato-allies-launch-defense-bank-to-fund-military-projects ### 2026-07-07: NATO launches HALO megaconstellation to unify member satellite capabilities NATO announced the HALO satellite megaconstellation, linking eight allies’ military satellites for resilient communications and ISR, alongside $50bn of new defence tech contracts. 4 sources. https://clstr.news/cluster/nato-launches-halo-space-satellite-initiative-to-bolster-alliance-capabilities ### 2026-07-02: Canada to unveil founding members of Global Defence Bank at NATO summit Canada plans to announce around 10 founding members of a new Defence, Security and Resilience Bank at the NATO summit, targeting £100 bn in financing for allied defence; initial members likely European, with a 5 sources. https://clstr.news/cluster/canada-to-unveil-founding-members-of-global-defence-bank-at-nato-summit ### 2026-06-15: Canada becomes first non‑European nation to join EU defence loan programme SAFE EU Council approves Canada as the first non‑European country to join the €150 bn SAFE defence loan programme, expanding supplier access and deepening EU‑Canada security ties. 2 sources. https://clstr.news/cluster/canada-joins-eu-safe-defence-loan-programme --- Cite as: Canada's defence finance ties – DSRB expansion. CLSTR, https://clstr.news/situations/canadas-deepening-defence-finance-ties