Loss of Only Bank on Grand Manan Could Have Devastating Effects

Scotiabank is set to close its doors for good on the Grand Manan Island, New Brunswick on August 24. When the bank closes, customer accounts will be moved to its nearest branch in St. George. That means island residents, of which there are about 2500, will soon have to make a 9-hour roundtrip, which includes the added expense of a ferry ride to the mainland, to do in-person banking.

With lucrative fishing and tourism industries on the island, the bank closure announcement in early 2022 was a shock to many of the island, including Village of Grand Manan Mayor Bonnie Morse. Morse says Scotiabank isn't necessarily losing money on the island but that the inconvenience of operating a remote bank has likely impacted the bank's decision, coupled with other issues the bank created when it didn't offer loans to many local business operators.

"We have a number of fishing businesses in particular that Scotiabank didn't give loans to so that they could buy boats and gear after a policy change about 10 years ago," said Morse. "Those fishermen took their business elsewhere."

While Scotiabank says it will assist in transitioning islanders to doing more online banking, the impact won't just hit seniors and the technologically challenged. Morse worries new businesses won't open and existing ones could close if they are forced to lose a full day's operations simply to make a trip to the mainland to visit the bank. On top of that, population growth could take a hit.

"I absolutely fear the impact," says Morse.