Scotiabank commits more than $100-billion to help fund expansion of Canadian companies

Bank of Nova Scotia BNS-T is committing more than $100-billion in financing to help Canadian businesses expand and is launching an institute led by a former ambassador to assess the country’s long-term competitiveness.

Ahead of Ottawa’s investment summit, Canada’s biggest banks have been launching initiatives to provide financing for domestic companies as the federal government races to reduce the country’s dependence on the United States. As part of Scotiabank’s initiative, financing, underwriting and investment will be available to Canadian companies and projects in sectors the bank believes will drive economic growth over the next five years.

The sectors included in the initiative will align with the areas targeted by Canada’s Major Projects Office, including clean energy, oil and gas, critical minerals, advanced manufacturing, technology and defence, Scotiabank chief executive officer Scott Thomson said ahead of the Canada Investment Summit.

“You’ve seen an increase in interest from foreign investors in Canada. Canada does have what the world needs from a resources perspective, but also from a talent, institutional strength and trust perspective – and the interest is there,” Mr. Thomson said in an interview.

“It felt like the time for us to really step forward, and we’re making this commitment.”

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The bank is also launching the Scotia Growth Institute, a new group focused on providing insights from its teams, partners and clients in high-growth sectors to policy-makers, business leaders and markets to inform their decisions in advancing economic growth.

Kirsten Hillman, former Canadian ambassador to the U.S., has joined the institute as lead strategic adviser. The bank said it plans to tap other leads with expertise in national competitiveness as strategic advisers.

“Canada does not lack ambition or opportunity,” Ms. Hillman said in a statement. “What is needed is sharper analysis, practical solutions, and a clear understanding of where we can compete and lead.”

The institute’s first publication is a one-year progress report on potential projects in Canada and initiatives related to the Major Projects Office, which was established under Prime Minister Mark Carney in August, 2025, to help fast-track proposals deemed to be in the national interest. The country has a national project inventory of $1.15-trillion across energy, mining and infrastructure, an indicator of the significant scale of Canada’s economic expansion potential, according to the institute’s research.

Evidence already suggests that Ottawa’s efforts to accelerate project timelines are taking effect, Mr. Thomson said. He cited major initiatives in Western Canada, including the rising potential for LNG Canada Phase 2, an export terminal expansion in Kitimat, B.C., that would double the facility’s capacity.

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He also cited Britain-based Shell PLC’s acquisition of Alberta’s ARC Resources Ltd. in a US$16.4-billion deal. Analysts said the deal emphasizes the attractiveness of Canadian assets, particularly in the liquefied natural gas sector.

“I can see the interest from our clients in Western Canada is at a different level than it was a couple years ago,” Mr. Thomson said. “The regulatory environment has become easier to navigate.”

The project pipeline also faces a steep “expenditure wall” between 2027 and 2031, which will pressure skilled labour availability, supply chain logistics and cost containment, the report said. Companies will have to compete for welders, electricians, heavy-equipment operators, pipefitters and project managers, many of whom are already employed.

Scotiabank is also allocating $50-million for programs that help address future labour shortages and provide Canadians with skills required for high-growth sectors and innovation and artificial intelligence.

Over the past year, calls mounted for Canada’s banks to increase lending for small- and medium-sized business and for pension funds to increase domestic investments.

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Canadian banks, analysts and industry researchers urged the banking regulator, the Office of the Superintendent of Financial Institutions, to free up lending capacity.

In June, OSFI reduced the size of the capital cushion the country’s biggest banks must hold, freeing up billions of dollars to boost lending as Ottawa looks to attract greater private financing for high-growth sectors. The regulator also lowered the upper range of the domestic stability buffer, providing banks with more certainty that the capital requirement will not spike, which would force them to hold substantially more capital.

Mr. Thomson said OSFI’s decision to lower the buffer helped free up capital to allow Scotiabank to commit more lending to Canadian businesses.

“As the regulator signals that the system is resilient, and they’re actually fine with banks running below the current rate, that does give CEOs some flexibility to make some capital commitments,” Mr. Thomson said.

Banks have also been grappling with ways to finance the growing defence sector, companies they once shied away from because of greater risks associated with lending to the industry. In recent months, lenders have been pledging support for defence businesses as Ottawa spends to expand Canada’s military industrial base.

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On Sept. 8, Scotiabank said it plans to issue Canadian defence bonds to help raise capital for companies. It also created a framework to provide transparency to investors and industry on its financing and refinancing activities in defence.

Mr. Thomson said the banks did not previously play a significant role in small- and medium-sized defence companies as the government had not prioritized military spending, but that is changing. Scotiabank’s staff has been developing more expertise in defence.

“When you recognize that this is an opportunity, when you see where the opportunity is – which is really in small business – it does require the bank to pivot a little bit in terms of making sure you have the right people on it,” he said.

Scotiabank’s financing commitment is part of a series of new measures from Canadian banks to lend to and invest in domestic businesses.

Royal Bank of Canada launched a $1.4-billion fund aimed at investing in Canadian technology companies, including aerospace and dual-use defence businesses.

Bank of Montreal said it will deploy up to $70-billion in new capital over 10 years for key sectors.

Canadian Imperial Bank of Commerce committed $2-billion over five years for small- and medium-sized defence-related and dual-use businesses.