Add Grand Bank to the growing list of communities now learning that they’re losing banking services in the coming months.
Scotiabank is cutting staffing by 3 per cent, resulting in a number of branch closures across the province, primarily affecting rural parts of the province.
Bonavista, Twillingate, Whitbourne, and Burgeo are among the municipalities now learning that after next August, the nearest face-to-face banking services for Scotiabank customers will be more than a hour’s drive away.
Grand Bank Mayor Rex Matthews says he was shocked to learn the local branch in his community is among those shutting down. He says the bank needs to be held accountable for the impact the decision will have.
“I think the province might want to be asking some questions of Scotiabank,” says Matthews. “What are they doing? What are their plans? What are they trying to achieve? I mean, how much money do you need to make?”
Scotiabank in Bonavista via Google Maps
Bonavista is another town that learned it’s losing its branch. Bonavista has been bucking trends and has experienced an influx of residents in recent years, as well as corresponding growth in the local business community.
Mayor John Norman is fearful that losing their only bank branch will have economic ramifications for the town.
Norman is just back from a speaking tour on Bonavista’s recent economic development. He wants to see the numbers that led to Scotiabank’s decision to close bank branches.
“To me, it feels like a cash grab,” says Norman. He says staff with the town, and his own companies “will not be driving three hours a day to do corporate deposits or to do general business banking—that’s not happening.” He says they’ll be happy to give their business to somebody else.
Deatra Walsh of Municipalities Newfoundland and Labrador says she has little doubt the closures are going to dominate discussion at MNL’s AGM and Conference this week.
She says federal Minister of Rural Economic Development Gudie Hutchings will be in attendance. Walsh says rural economic development will also be discussed at a Premier’s Forum. “This is a very good question to bring to those tables. Will this hamper growth? Is this okay? What are the options here?”
