Following a recent commitment by NATO countries to invest 5% of their GDP in defense, global banks are backing a new financial institution aimed at supporting NATO nations and their allies in financing defense needs.
In July 2025, UK Chancellor Rachel Reeves and Defense Secretary John Healey endorsed the establishment of the Defence, Security and Resilience Bank (DSRB). This international financial institution, owned by member nations, will facilitate the 5% GDP pledge.
The DSRB’s mission is to leverage capital markets to enhance deterrence, readiness, and collective security. In an era characterized by systemic threats, this new bank aims to equip the free world with the financial resources necessary for defense.
European Parliament MEPs have also voted for a resolution to create the DSRB to fund critical defense procurement, support modernization, and strengthen supply chain resilience across NATO, the EU, and allied nations in the Indo-Pacific.
Developed by a nonprofit organization, the DSRB Development Group, the initiative seeks to enhance international coordination with contributions from bankers, lawyers, defense investment specialists, and senior policy leaders to design a robust financial infrastructure that supports security supply chains.
At this stage, the DSRB has the backing of Commerzbank, ING, JPMorgan Chase, Landesbank Baden-Württemberg, and RBC Capital Markets. These banks will assist in areas such as sovereign lending instruments, capital structuring, investor engagement, risk management, and access to debt capital markets.
The goal is to secure private capital, with expectations of additional banking partners and investment firms joining before early September, when formal engagement on the bank’s structure will begin.
Rob Murray, former head of innovation at NATO and CEO of the DSRB Development Group, stated, “For too long, we have underestimated the role of capital in defense. The banks stepping up today recognize that deterrence requires financial support—this new institution is designed to provide it.”
Kevin Reed, president of the DSRB Development Group, added, “This is not just about financing defense; it’s about redefining deterrence for the modern era. In the twentieth century, deterrence meant industrial mobilization. In the twenty-first century, it means financial partnership.”