National Australia Bank (NAB) has announced it will reopen its Uralla branch in August, pre-empting a motion to condemn the bank's "poor conduct" in parliament.
The Uralla branch shut up shop months ago at the height of the COVID-19 crisis.
But with NAB not answering requests for information from the local council or local MP, Member for Northern Tablelands Adam Marshall said he was concerned the bank was preparing to use the coronavirus pandemic to close the branch for good.
On Tuesday he gave formal notice he would ask NSW parliament to condemn the bank for failing to communicate properly about its plans for the shopfront, and calling on it to reopen the Uralla branch.
"I have fears, just like in 2018 when NAB slammed the door on its branch at Bingara in the middle of a drought, the bank is using the pandemic to withdraw from the vibrant and successful small town," he said.
In a statement on Wednesday afternoon, a spokesperson for NAB said the company planned to reopen the store by August, but said if advice changes they may be required to review the date.
"We continue to monitor the advice of both state and federal governments and their advisors, and when we are able to safely re-open branches we will do so," they said.
Mr Marshall said the "timing is uncanny".
"I'm just absolutely delighted for the community that NAB have very, very quickly backflipped and decided to reopen the branch and to reopen it rather quickly. I think this is welcome news," he said.
"Taking the matter to parliament was really a last-ditch attempt to get NAB to not just respond, which they hadn't so far, but also to make the decision that the community wanted them to make which was to please reopen like every other business and other financial institution had done already in the community."
The branch will reopen on August 17.