Township to pull banking business from TD if a new bank will come to Millbrook

MILLBROOK - Cavan Monaghan Township is threatening to pull its $20-million of banking business out of the soon-to-close TD Canada Trust branch in Millbrook and is dangling it as a carrot to lure a new financial institution to the village.

Township council unanimously passed a motion Tuesday afternoon to transfer its banking business to any financial institution willing to open a branch in Millbrook.

The motion follows TD Canada Trust’s Feb. 8 decision that the TD Canada Trust on King St. in Millbrook will close on Aug. 18.

The branch will merge with the branch on Lansdowne St. W. in Peterborough (in the Consumers Plaza at Webber Ave., across from Best Buy).

“I couldn’t disagree with their opinion more,” Mayor Scott McFadden told council.

“This decision will impact the township, citizens and businesses that have chosen to bank locally. In my opinion, they have chosen to make a business decision to better meet their own bottom lines without any dialogue or understanding of the needs of our citizens and local businesses.”

McFadden says the township is the Millbrook branch’s largest customer, with about $15 million in a general working fund and another $5 million or so in long-term investments.

Under the motion, the $15-million general working fund would be transferred to a new institution if one sets up shop in Millbrook and investments with TD Canada Trust would not be renewed as they come up for renewal.

McFadden said no jobs are being lost by the branch closure because the branch’s employees will have jobs in Peterborough when the branch closes.

The branch closure was a corporate decision, not a local one, McFadden added, and TD Canada Trust had already indicated it wonèt budge on the branchès closure.

But North Monaghan Ward Coun. Tim Belch was skeptical of that.

“I’m really disappointed in TD as a BIA representative,” Belch told council.

“They basically did not even consult with the businesses, pretty much just saying ‘we’re gone’ and if you want to do anymore banking you have to into Lansdowne. I’m disappointed that, knowing we’re going to have a larger community in the future, why would they pull stakes now?

“I just can’t help but feel that it is more than just the head office making the decision. I have a sneaking suspicion that it is the manager of the bank, who lives in the city of Peterborough.”

Since TD Canada Trust’s announcement, no other financial institution has yet stepped forward to fill the gap. Kawartha Credit Union even issued a statement that it is not interested in opening a branch of the credit union in Millbrook.

Canada’s bank companies have been closing or consolidating branches as more clients turn to internet banking and new fintech startups launch mobile apps for smartphones to compete with the banks for business.

While the motion was unanimously supported by the councillors, several had questions about what would happen with the township’s banking if no new financial institution comes forward. McFadden replied that that could be addressed with a new motion later on.

There was no response on Tuesday from TD Canada Bank to township council’s motion.