Ontario and the City of Toronto have launched a joint bid to make Toronto the headquarters of the newly established Defence, Security and Resilience Bank, a multilateral lending institution that would create an estimated 3,500 skilled jobs.
The provincial government announced the initiative Wednesday alongside Toronto Mayor Olivia Chow, federal MPs and supporters from financial services, technology, defence and academic sectors.
“As the financial capital of the country and second largest financial centre in North America, Toronto and Ontario offer unparalleled access to markets, world-class workers and infrastructure,” said Premier Doug Ford. “Headquartering the Defence, Security and Resilience Bank, and the long-term economic benefits it would bring, is a once-in-a-generation opportunity that would benefit every part of the country.”
About the bank
The DSRB is modelled after the World Bank and designed to finance defence, security and resilience projects for NATO members and allied nations. It combines public and private capital to provide funding for governments and support smaller suppliers, according to the province.
The institution was created to address financing challenges in the defence sector as countries increase spending on national security and international commitments.
Toronto’s advantages
Toronto is Canada’s largest financial centre and second largest in North America, home to all five major Canadian banks and more than 40 foreign banks. The city offers direct access to capital markets, pension funds and banks ranked among the world’s safest, according to the bid.
The Greater Toronto Area hosts defence and technology companies working in aerospace, artificial intelligence, cybersecurity, quantum computing, robotics and advanced manufacturing. Southern Ontario is home to more than 900 defence-capable organizations.
Toronto Pearson International Airport provides direct flights to nearly 200 destinations, the most of any Canadian airport. The city has 107 consulates and residents who speak more than 190 languages.
Economic impact
Ontario’s defence industry is the largest in Canada by employment, representing approximately 36 per cent of Canadian defence sector jobs. Over the past 10 years, employment in Toronto’s financial services sector grew at the highest rate in North America, according to the Conference Board of Canada.
The federal government has pledged to increase defence spending to five per cent of annual GDP by 2035 to meet Canada’s NATO commitment.
“Toronto is Canada’s financial engine, and our diversity of talent is unmatched, with a highly skilled workforce and world-class research institutions,” said Chow. “This is an opportunity to bring the world to Toronto, create thousands of jobs and demonstrate Toronto’s leadership on the world stage.”
Peter Bethlenfalvy, Ontario’s minister of finance, said hosting the bank would support jobs, innovation and development of advanced technologies across the province while creating foundations for a competitive economy.
