BMO has named Michael Bonner enterprise chair for the Canadian defence sector, a new executive role that coordinates the bank’s defence work across its business lines.
Why it matters: Canada’s big banks are competing for a share of defence financing as federal spending climbs toward NATO’s new investment target. BMO joins CIBC and Scotiabank, which both announced defence-focused financing commitments this fall.
Driving the news: Bonner will coordinate BMO’s defence sector growth strategy across three businesses: Canadian personal and business banking, commercial banking and capital markets.
He will also act as the bank’s liaison to government agencies and industry associations on defence-related financing, export credit and procurement.
Bonner keeps his current role leading BMO’s Canadian Personal and Business Banking Distribution group.
Retired Maj.-Gen. David Fraser, BMO’s defence and security adviser, will report to him.
Wainwright support: BMO is donating $175,000 to support victims of the fire at CFB Wainwright. Four Canadian service members were killed and 39 people injured when the fire swept through an outdoor training exercise in Alberta on Oct. 17.
By the numbers:
Up to $70 billion: capital BMO has committed to mobilize over 10 years for sectors it considers critical to Canada’s economic security and resilience. Defence is one of them.
$150 billion: annual economic impact BMO Economics forecasts by 2035 if Canada meets its pledge to invest 5 per cent of GDP in defence and security. The figure comes from the bank’s report “Defence Spending as Economic Offence.”
$175,000: BMO’s donation for those affected by the Wainwright fire.
What they’re saying: “Canada is entering a period of significant investment in defence, security and industrial capacity,” said Darryl White, chief executive officer of BMO Financial Group. “Today’s investments in defence and security are also investments in Canada’s long-term economic strength, competitiveness and resilience.”
Bonner said businesses of all sizes are looking for financial partners who understand the sector. “As governments and industry work to strengthen Canada’s defence industrial base, opportunities are emerging across advanced manufacturing, technology, cybersecurity, infrastructure and supply chains,” he said.
Retired Gen. Wayne Eyre, former chief of the defence staff, said the role builds on Bonner’s two decades of work supporting the Canadian Armed Forces community.
“I commend BMO’s efforts to strengthen support for Canada’s defence community through a structured and sustained commitment to serving the unique banking needs of those who serve our country,” said Vice-Admiral Angus Topshee, vice chief of the defence staff.
The bigger picture: BMO expects defence spending to open opportunities for small and medium-sized businesses as well as large firms. It points to advanced manufacturing, aerospace, technology, cybersecurity, artificial intelligence, quantum technologies and critical minerals.
CIBC committed $2 billion in September to fund small and medium-sized defence and dual-use businesses.
Scotiabank has launched a Canadian Defence Issuance Framework for defence-related bonds.
BMO, like CIBC, is a partner bank for the Defence, Security and Resilience Bank (DSRB) Development Group.
Background: BMO has been the official bank of the Canadian Defence Community since 2008. Through its Canadian Defence Community Banking program, it serves military members, veterans and their families.
Bonner received the Canadian Army Command Commendation on Sept. 9. Lt.-Gen. Michael Wright, commander of the Canadian Army, presented it.
The commendation, created in 1995, recognizes military members and civilians whose contributions go beyond normal duty to support the Army.
What’s next: BMO and the Institute of International Finance will co-host a Defence Finance Forum in Toronto on Oct. 22. Finance leaders from the defence sector will discuss its role in economic security, industrial capacity and competitiveness.
