Bank of Montreal BMO-T +0.40%increase
said it will deploy up to $70-billion in new capital over 10 years for sectors considered critical to Canada’s economy.
The bank said its plan is aimed at supporting Canada’s economic security and resilience. It’s the latest move among Canada’s biggest banks targeting sectors Ottawa has deemed essential to reduce dependence on the United States and bolster the economy.
BMO will focus on key industries, including electricity, energy and transportation infrastructure, mining and critical minerals, AI computing, defence and security, and oil and gas.
The capital will be issued through bank financing, debt capital markets activity and the raising of public equity.
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BMO chief executive officer Darryl White said Canada’s growth requires capital to back new ideas.
“The opportunities before us today in these critical economic sectors are the latest chapter in that story,” he said in a statement.
Over the past year, calls have mounted for Canada’s six biggest banks to increase lending for small- and medium-sized business and for pension funds to boost investments in the country. At a Senate committee in June, Canada’s banking regulator cited a fund by JPMorgan Chase & Co. JPM-N +0.87%increase
, the world’s biggest bank, saying Canadian banks should “step up and make the same commitment to Canada.”
Last year, U.S.-based JPMorgan said it would invest US$1.5-trillion over 10 years in industries that bolster the U.S. economy’s security and resilience. Earlier this year, the bank said it is expanding that support to Canada, Europe and Britain.
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Royal Bank of Canada RY-T +0.10%increase
announced it is launching a $1.4-billion fund aimed at investing in Canadian technology companies, including aerospace and dual-use defence companies. The lender said the fund will focus on sectors where it believes the country’s greatest strengths lie.
Canadian Imperial Bank of Commerce CM-T +0.11%increase
is committing $2-billion over five years for small- and medium-sized defence-related and dual-use businesses as Ottawa spends to boost the country’s military base.
Bank of Nova Scotia BNS-T +0.63%increase is planning to issue Canadian defence bonds to help raise capital for companies.
National Bank of Canada NA-T +0.47%increase
tapped former top general Rick Hillier to advise on defence and assist with the lender’s efforts to grow its client base in the defence and security industry, as well as among dual-use companies.
BMO said its efforts should support national priorities to help Canadian businesses compete as the global economy shifts. This could include initiatives proposed to the Major Projects Office, as well as projects related to Canada’s national electricity strategy, the province of Alberta and the oil sands, sovereign AI, and analysis related to the defence and oil and gas sectors.
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