Posted by & filed under Accounting Principles, Managerial Accounting.

Description: TD Bank, CIBC, the National Bank and the Bank of Nova Scotia, all representatives of a highly profitable Canadian banking sector, all appear to be in a cost-cutting mode. One of TD’s moves will be to shrink its branch footprint through amalgamations and closures of branches. But TD is also proposing shrinking the actual square footage of some branches by approximately 2,000 square feet. As more banking moves online, the theory seems to be that branches require less space.


Date: October 15, 2015


Discussion Points:

1) What  managerial accounting techniques might help a bank identify areas of potential cost savings?

2) The article notes that 2/3 of TD’s customers use both online and traditional branch services. What strategies might TD use to ensure that the cost-cutting moves did not alienate those customers?

3) What are some of the accounting issues that might be associated with branch closures?

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