ING among five banks working to set up new defense fund for NATO allies

ING are of five international banks working on the establishment of a Defense bank. This bank, named the Defence, Security and Resilience Bank (DSRB), will be set up to help NATO countries and their allies with financing their defense needs.

The establishment follows the recent commitment by NATO countries to invest 5 percent of the size of their economies in defense. The DSRB is a non-profit organization and, according to ING, is in that sense comparable to the European Investment Bank (EIB), an EU institution.

However, ING does see business opportunities for itself. The initiative also aligns with ING’s renewed policy to better support clients with defense investments. Although a condition remains that environmental and social standards set by the bank are met.

The other banks involved in the establishment of the DSRB are Commerzbank, JPMorganChase, Landesbank Baden-Württemberg, and RBC Capital Markets. More banks are expected to join the group in due course.

“We have underestimated the role of capital in the defense sector for too long,” said Rob Murray. He is the former head of innovation at NATO and current CEO of the DSRB Development Group, who are leading the development of the bank. "The banks expressing their support today understand that deterrence requires financial backing, and this new institution is being established to provide just that."

The news on Thursday was preceded by several developments. Members of the European Parliament voted in favor of a resolution urging member states to establish the DSRB.

More announcements are expected in the coming weeks, with large investors likely to pledge their support as well. Formal discussions on the exact structure of the bank will begin in early September.