Bank of Montreal will channel up to $70-billion into industries Ottawa considers vital for national economic security over the coming decade, a direct response to mounting pressure on Canada’s biggest financial institutions to back domestic growth.
The commitment represents the latest in a series of moves by major Canadian lenders targeting sectors that reduce dependence on the United States. Policymakers have pushed banks to expand financing for small and mid-sized companies while pension funds face similar calls to invest more at home.
BMO’s capital deployment will prioritize electricity, energy and transportation infrastructure, mining and critical minerals, AI computing, defence and security, plus oil and gas. Funding will flow through bank financing, debt capital markets activity and public equity raises.
Chief executive Darryl White framed the initiative as part of Canada’s ongoing growth story. “The opportunities before us today in these critical economic sectors are the latest chapter in that story,” he said in a statement.
The announcement follows a wave of comparable pledges from rival institutions. Royal Bank of Canada launched a $1.4-billion fund for Canadian technology companies, including aerospace and dual-use defence firms. Meanwhile, Canadian Imperial Bank of Commerce committed $2-billion over five years to defence-related small and mid-sized businesses.
Scotiabank plans to issue Canadian defence bonds to help companies raise capital. National Bank, for its part, recruited retired general Rick Hillier to advise on defence financing and expand its client base in the security sector.
Pressure intensified after Peter Routledge, head of the Office of the Superintendent of Financial Institutions, cited JPMorgan Chase’s US$1.5-trillion commitment to U.S. economic security. Routledge told a Senate committee in June that Canadian banks should “step up and create the same commitment to Canada.”
JPMorgan expanded that support to Canada, Europe and Britain earlier this year.
BMO said its efforts align with priorities including the Major Projects Office, Canada’s national electricity strategy, Alberta’s oil sands, sovereign AI and defence sector analysis. As a result, the bank positions itself to back projects spanning provincial and federal initiatives alike.
