LONDON – Britain will not join the Canada-led Defence Security and Resilience Bank (DSRB), but the two countries have agreed to develop a framework for cooperation between their separate defence-funding initiatives.
In a joint statement on Sunday, Britain and Canada said they would establish two distinct but complementary institutions to support each other on investment opportunities and strategic challenges.
“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 a source familiar with the discussions, the two governments could not agree on several key issues, including the location of the new bank’s headquarters, the level of joint procurement, lending to member countries and rules for future membership.
The Multilateral Defence Mechanism is expected to focus on accelerating defence investment, enabling joint procurement through financing and pooling demand among NATO allies to reduce procurement costs.
The DSRB will complement the MDM by supporting investment in defence industries and supply chains, with a greater emphasis on lending to individual sovereign states.The Canada-led bank has faced difficulty securing backing from larger European nations, and Britain has previously distanced itself from the project.
Britain and Canada said the two institutions would work in close partnership to address emerging industrial priorities, investment opportunities and strategic financing challenges.