JP Morgan Chase, Commerzbank, ING Group, RBC Capital Markets, and Landesbank Baden-Württemberg are backing a new pan-European financial institution—the Defense, Security and Resilience Bank (DSRB)—aimed at boosting defense and security investment across Europe. According to Rob Murray, the CEO of the development group and a former NATO innovation head, the DSRB seeks to raise £100 billion ($132.9 billion) to accelerate defense procurement and reduce reliance on government debt, particularly amid concerns over diminishing U.S. military support.
The bank will provide credit guarantees for commercial lenders, especially to support smaller defense suppliers, and issue AAA-rated bonds to reduce state borrowing costs. It will also support allies in North America and the Indo-Pacific. The initiative aims to help NATO countries increase defense spending, with a 5% GDP target potentially unlocking $1.9 trillion in extra funding.
One likely beneficiary is the UK-Italy-Japan Global Combat Air Programme. DSRB funding would allow such projects to access multiyear capital without waiting for annual government budgets. Finance firms involved are currently offering their services free and will join working groups in September to shape the bank’s structure and strategy.
