Geopolitics, Defence Spending, Financial Stability Converge, Create Financing Gap
Security and defence are no longer peripheral public policy concerns; they have emerged as systemic financial risks with direct consequences for fiscal sustainability, capital markets, and financial stability. This paper argues that persistent geopolitical tensions, long‑duration defence commitments, and capital‑intensive security investments have created a structural financing gap that traditional public budgets and private markets cannot address on their own. The Defence, Security, and Resilience Bank (DSRB) is a purpose‑built financial institution designed to fill this gap by pooling sovereign backing, extending financing horizons, and reallocating security‑related risks across countries and over time. For senior finance leaders and policymakers, the analysis underscores why governance, transparency, and risk allocation matter as much as headline defence spending, and how security finance is reshaping macro‑financial transmission, regulatory priorities, and long‑term capital allocation decisions.