Britain will not join Canada-led defence bank, opting for separate mechanism

Britain will not join the Canada-led Defence, Security and Resilience Bank (DSRB), according to a source familiar with the matter, but the two countries said they would develop a framework for cooperation between their respective defence-funding initiatives.

In a joint statement on Sunday, the two governments said they had agreed to establish two distinct but complementary institutions. “We have been working closely to consider how the Multilateral Defence Mechanism (MDM) and Defence, Security and Resilience Bank (DSRB) can best advance our shared objectives. We have agreed to develop a framework of cooperation that works in the interest of both institutions,” the statement said.

According to another source, the two governments were unable to agree on key issues including the location of the bank’s headquarters, the level of joint procurement, lending to members, and the rules around new members joining.

The UK’s MDM will focus on accelerating defence investment, joint procurement through financing, and bringing together demand across NATO allies to reduce procurement costs, while the DSRB will complement it by supporting investment in defence industries and supply chains, focusing more on single-sovereign lending.

Britain has previously distanced itself from the Canada-based project, which has sought around €100 billion to lend at low cost to governments and contractors for defence projects. The DSRB will be designed to work in close partnership with the MDM on industrial priorities, investment opportunities and strategic financing challenges, the two governments said.

Sources: Reuters (https://www.reuters.com/business/finance/britain-will-not-join-canadas-defence-bank-source-says-2026-10-25/); Financial Times item listed 25 October 2026 (“Britain will not join Canada-led defence bank”).