While the bank used to be open from 10am to 4pm, the opening hours changed last week to 11am to 3pm.

The hours at the bank's Timboon branch have been reduced to 10.30am to 2.30pm.

Residents have planned a protest on Tuesday to voice their frustration at the reduced hours.

Corangamite Shire's Cr Chris O'Connor said people should consider which bank they were with and which bank was committed to the town.

"We're of the opinion that the (Commonwealth) bank is winding down in the town," he said.

"The bank has a relationship with the post office and it may retreat to the post office and have a minimal presence in the town.

"This is the thin edge of the wedge and the start of the wind down."

Cr O'Connor said the reaction in Terang had been one of disappointment and resentment.

"The Commonwealth Bank has quite a large footprint in the Terang postcode area," he said. "Sources have told me there are $120 million in deposits and loans with the bank in the Terang postcode area.

"Terang people are saying they're putting in millions of dollars in profits to the bank and the bank isn't prepared to put in anything in the town.

"Banking is entering a new phase of cost cutting and part of that will mean closing branches.

"We're putting all banks on notice. If they're not committed, we're prepared to walk.

"We would encourage not just Commonwealth Bank customers but all people interested in Terang and retail to come on Tuesday and we want the other banks to take notice.

"We have had a broad range of discussions with the Commonwealth Bank and they are of the opinion that they won't lose any customers."

Cr O'Connor said he expected the protest to be peaceful and non-disruptive, but residents wanted to get their message across.

He said the town's two other banks, the ANZ and the National Australia Bank, had not changed.

A Commonwealth Bank spokeswoman said there had been a review of its smaller branch operations following a reduction in transactional banking levels.

"These smaller branches generally have two to three staff and some have closed at lunch time," she said. "The change in hours means that we will be able to open during the peak lunch period when normally the bank would, for staff security reasons, be required to close."

The protest will be held at Terang's Commonwealth Bank on Tuesday.

cquirk@standard.fairfax.com.au

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