EBF Policy Note –  The Role of Banks in Financing the EU Defence Industrial Base

Brussels, 31 October 2025 – The EBF has today published its Policy Note, “The Role of Banks in Financing the EU Defence Industrial Base,” providing a high-level overview of key EBF considerations regarding the role of banks in financing Europe’s defence sector.

Amid evolving geopolitical dynamics and the EU’s growing ambition to strengthen its defence readiness, facilitating and streamlining access to finance for European defence companies has become a priority topic on the EU policy agenda.

The EBF fully recognises the importance of a pan-European dialogue on scaling up and financing Europe’s security and resilience. The EBF stands ready to contribute to the ongoing discussions on building a more integrated European Defence Technological and Industrial Base (EDTIB).

The Policy Note outlines a set of key messages:

• Banks play a strategic role in Europe’s growth and security. The banking sector remains central to the EU’s growth strategy and continues to play a pivotal role in financing a secure, competitive and prosperous Union. This commitment is reflected in recent initiatives taken by banks, as highlighted in the Note.
• The EBF considers that the EU regulatory framework does not pose any specific barriers for banks to provide financing to companies in the defence industry.
• Further improvements are possible. While no regulatory obstacles exist, the Note introduces preliminary views on measures to strengthen an investment-ready market, including consolidating demand, issuing clearer procurement signals, and reducing financial risks.

The Note also includes a short descriptive section recalling key concepts that help contextualise the role of banking operations in the defence space. These cover, among others, distinctions between bank lending and equity financing, and the role of public spending.

With this Policy Note, the EBF reaffirms its support for the EU’s objective of achieving strategic autonomy in the defence sector and calls on policymakers to recognise a strong and competitive banking sector as essential to its realisation.

For more information:

Jacopo Borgognone, Senior Policy Advisor, Capital Markets, j.borgognone@ebf.eu

Laura Sambruna, Intern, Innovation and Cybersecurity, l.sambruna@ebf.eu

About the EBF:

The European Banking Federation is the voice of the European banking sector, bringing together national banking associations from across Europe. The federation is committed to a thriving European economy that is underpinned by a stable, secure, and inclusive financial ecosystem, and to a flourishing society where financing is available to fund the dreams of citizens, businesses and innovators everywhere.