The European Banking Federation (EBF) has published a policy note setting out its high-level views on the role of banks in financing the EU defence industrial base, as access to finance for European defence companies becomes a priority on the EU policy agenda. The note’s central conclusion is that the EU regulatory framework does not create specific barriers preventing banks from financing defence industry companies. Alongside positioning banks as strategically important to Europe’s growth and security, the EBF sets out preliminary views on measures that could strengthen an investment-ready market even in the absence of regulatory obstacles. These include consolidating demand, providing clearer procurement signals, and reducing financial risks. The note also recaps concepts intended to frame bank activity in this area, including distinctions between bank lending and equity financing and the role of public spending, and it signals the EBF’s intention to contribute to ongoing pan-European discussions on building a more integrated European Defence Technological and Industrial Base (EDTIB).
European Banking Federation 2025-10-31
European Banking Federation publishes policy note arguing EU rules do not hinder banks’ financing of the defence industrial base
The European Banking Federation (EBF) published a policy note asserting that the EU regulatory framework does not hinder banks from financing the defence industry. The note emphasizes banks' strategic importance to Europe's growth and security and suggests measures to enhance an investment-ready market, such as demand consolidation and clearer procurement signals. The EBF also seeks to engage in discussions on strengthening the European Defence Technological and Industrial Base.