The Marcus Square area of Newry has been evacuated during a security alert, which a local MLA says has "all the hallmarks of dissident IRA activity".
"Two masked men entered the bank premises in Hill Street in Newry on Monday morning, and they left a holdall there," said local MLA Dominic Bradley.
"The people of Newry are very angry the commercial life of Newry is being disrupted," he said.
Marcus Square, Needham Bridge and Hill Street in the city are closed.
Parts of Water Street and Trevor Hill are also cordoned off.
"Moreso, they're angry that a device like this can put in danger life and limb of the local community and at a time when Newry is mourning the two women brutally murdered in Turkey, it underlines the total futility of this type of activity."
Meanwhile a security alert is continuing in Ballymoney after the discovery of a suspicious package in the town.
The object was found on Ozone Avenue in the town on Monday morning.
Army bomb experts are currently at the scene and a number of residents have been evacuated from their homes.
Ozone Avenue and Meeting House Street have been closed.