As Europe prioritizes defense, it faces challenges with its banking sector, which is resistant to financing arms manufacturers due to regulatory and ESG concerns. Executives and politicians are urging a revamp of banking regulations to facilitate funding for defense startups, as many struggle to secure basic banking services. While major U.S. banks dominate defense financing, European banks are slow to adapt, treating defense firms as high-risk clients. Some, like Deutsche Bank, have started to open up, but significant barriers remain for smaller companies. Political leaders are advocating for greater support for the defense industry, signaling a potential shift in financing attitudes.