Kurow's only bank will close next Friday after an engineering survey of all National and ANZ banks found the Bledisloe St building did not meet earthquake standards, leaving locals with a 120km round trip to Oamaru to do their banking.
The ANZ branches in Oamaru and Balclutha also failed the banks' seismic grading and will be shifted to the towns' National Banks until further assessments are done by the buildings' owners.
Three staff at Kurow's National Bank are affected by the closure, but have been offered positions in Waimate or Oamaru. If they cannot take them up, they will be offered redundancy, Dunedin and north regional manager Vaughn Keenan, said yesterday.
Kurow residents said yesterday the decision to close the township's bank was "shocking", "ridiculous" and a "cop-out".
Long-time resident Betty Hill said she had banked with the National Bank for 48 years, and suggested many of the township's 500 residents would be inconvenienced.
"We have been loyal to the bank, absolutely loyal, and even the people who don't bank there use them indirectly."
Valley Cafe and Bakery assistant manager Dan Sargent said he faced "easily" an increased cost of $200 a week to travel to Oamaru.
"Especially at this time of the year, winter, when things are quiet, to have to go 40-60km to town just to get a bag of change is just ridiculous."
River Cafe and Restaurant owner Judy McDonald said she was "shocked" and "very disappointed".
The bank's proposal to install a deposit drop-box in the township was rejected.
"It is not so much the banking - it is getting change. You can't get money out of a drop box."
Mr Keenan said the safety of staff and customers was the priority.
Last year, after the Christchurch earthquakes, the banks started assessing all buildings they occupied in New Zealand.
The Kurow National Bank and ANZ branches in lower Thames St, Oamaru, and Clyde St, Balclutha, did not meet the standard the bank set.
Consultation started with Kurow staff "a couple of weeks ago", including one option of closing the branch.
Last Friday, staff were informed the bank would close.
The branch did not have an ATM machine. Installing one once the bank closed was not a viable option, with not enough transactions, he said.
The Kurow Information Centre had an ATM, but it was stocked from the bank.
Mr Keenan was first made aware of that yesterday, and said options were being investigated, along with providing a deposit drop box in Kurow.
The bank owned the 1903, single-storey Kurow building and Mr Keenan said no decision had been made yet on what to do with it.
Later this month, the ANZ branches in Oamaru and Balclutha will shift to the National Bank branches to allow landlords to assess the strength of the buildings.
Mr Keenan said the ANZ Oamaru building did not meet the banks' standard.
In the short term, the ATM machine would remain at the branch.
The National Bank building, which had two storeys and a basement, was built in 1871, but it had undergone considerable work, including strengthening, and came close to meeting the banks' standard.
In Balclutha, the ATM outside the ANZ bank would remain operating until a final decision was made.
Some minor remedial works were required on the Balclutha branch of the National Bank, but could be carried out without disrupting bank services, Mr Keenan said.
Ahuriri Community Board member and Kurow businessman Calum Reid said the loss of the bank was a "body-blow" for Kurow businesses.
He had "serious concerns" over how it would affect the economic benefits the township had expected to reap from the creation of the Alps 2 Ocean (A2O) cycle trail.
"Another concern is with the A2O cycle trail coming through the valley is how it may affect the spending power of visitors when they get to town.
"This is just another blow to the rural economy."
