Royal Bank of Canada chief executive Dave McKay stated that for Canada's major projects to succeed, Indigenous-owned businesses require greater access to capital. Speaking at an event on Thursday, McKay emphasized that most federal major projects are located on or adjacent to First Nations lands, making Indigenous partnerships essential to the process.
Indigenous Business Financing Gap
McKay highlighted a significant disparity in financing: only eight percent of Indigenous businesses rely on institutional loans as their primary funding source, and loan approval rates are substantially lower compared to non-Indigenous businesses. He acknowledged that banks are still learning how to operate effectively in this space but expressed confidence that financial institutions can play a meaningful role in improving Indigenous equity participation in major projects.
Major Projects Office and Indigenous Capacity Building
In August, Ottawa launched the Major Projects Office (MPO) to accelerate projects that will transform Canada's economy. To date, 15 projects have been included in the MPO, many in the mining and energy sectors. A key priority of the MPO is to build Indigenous capacity by ensuring that major projects contribute to long-term economic growth for Indigenous communities.
RBC's new Indigenous adviser and finance practice, housed within its capital markets business, will offer specialized expertise and capabilities to First Nations. This includes expanded access to capital, advisory services, and other capacity-building initiatives.
Finance Leadership Circles
As a first step, RBC will launch a series of finance leadership circles across Canada. McKay explained that these circles will be run in collaboration with Indigenous partners and are designed to support Indigenous nations in building financial management and governance expertise, sharing best practices, and unlocking new pathways to capital.
