M&T Banks Sustainable Practices and Analysis - Term Paper Example

Established in 1856 as Manufacturers and Traders Bank, M&T Bank Corporation has through the past 150 years emerged as America’s leading regional bank holding companies. Currently, M&T Bank is rated among the top 20 bank holding companies in the region. It has its headquarters situated in Buffalo, NY and an extensive muddle of widespread branches elongated in eight American States, District of Columbia and in Ontario, Canada as well. Apart from the 725 branches to cater customer needs, M&T Bank, the primary subsidiary of M&T Bank Corporation, provides banking services to its customers through 2,000 ATM’s across its widespread network. (M&T Bank : Facts & Figures) With the growing awareness about the importance of sustainable growth, more than 150 financial institutions across the planet have signed the United Nations Environment Programme (UNEP) symbolizing their commitment towards sustainable development. According to Ebenezer Olufowose, Executive Director, Access Bank plc, sustainable business practices signify a balanced composition of “balancing economic growth, social development and environmental protection to ensure future generations are not compromised by actions taken today.” (Osae-Brown) Along with its primary business, M&T Bank has been highly active in initiating commendable sustainable practices. With the sustainable business practices for a better environment, social development and economic escalation mainstreamed into its primary business, M&T Bank portrays a comprehensive as well as a positive picture in its business sustainability report. Healthier Environment The US government in 1980 initiated Comprehensive Environmental Response, Compensation and Liability Act (CERCLA) under which banks can directly be held responsible for the environmental contamination proven on their part and to pay penalties to compensate for the loss to the environment. (Bouma et al 24) The Act, in the last three decades, has led to a rising concern amongst US banks regarding their existing environmental procedures and M&T Bank has quite followed the ongoing trend. M&T Bank has been awarded with two prizes for the two new innovatively designed branches which are known to use ‘green’ technology and reduce the consumption of natural resources which deplete the environmental healthiness. M&T’s newly constructed branch’s structure in Chambersburg, Pa primarily constitutes, apart from florescent lamps, LED’s and ceramic metal halide lights in the lobby, a large number of energy-reducing elements including a colonnade with a canopy which provides shelter to the customers when they enter the branch and also protects the branch from direct sunlight. The branch also encourages its employees as well as the visiting customers to use fuel efficient vehicles as reserved parking areas are provided for these vehicles whereas racks are also available for bicycles. The glass walls provide for lesser dependence on artificial lighting and the routine work can be carried out by utilizing the natural light. The unique structure of the branch in Chambersburg is not the first of its kind. Similarly structured branch has also been constructed in West Seneca, NY earlier. The distinctive branch design depicts a serious intention of M&T’s management to try and improve its environmental contributions and its plans towards going ‘greener’ and more efficient in the future. Apart from the efficient design, M&T has implemented many changes including double side printing, paper recycling program, carpooling services, greater use of audio/video conferencing and, more importantly, installation of more efficient high-tech equipment which has reduced its carbon dioxide emission levels pretty sharply. Another measure taken in this respect is the setting up of a senior level advisory committee which evaluates the feasibility of environment-friendly alternatives available and helps the executives, operation managers and employees, at large, to contribute towards stepping into a further greener environment surrounding the banks. Thus, the M&T Bank has contributed immensely for a safer and healthier environment. Social Contributions The M&T Bank is quite famous for its tagline “A Community Bank at Heart”. The tagline signifies the priority and importance given by the management towards contributing positively to the community and society surrounding the Bank. Immense social contributions have been made and measures have been taken to best deliver the promise implied behind the tagline. Not only has the Bank contributed massively to other institutions and organizations, but the employees at M&T Bank also take initiative on their own in this respect, denoting the increased awareness provided to them in the Bank premises. In 2011, M&T donated more than $17 million to a large number of organizations and by today, employees at M&T have attended 5100 volunteer service events conducted for the benefit of others within the community. Adding to this, M&T Charitable Foundation has been constituted for the noble cause. During the current year, a remarkable effort made by M&T was when it sponsored the financial grants aggregating to $3.7 million under the Affordable Housing Program. These sponsored grants will provide referral services as well as help many low-income families in New Jersey, New York and Pennsylvania find first-class accommodation and also discover new employment opportunities. (Yahoo! News) Furthermore, for the recent Sandy victims also, the M&T Bank did not fail to lend a helping hand when it donated $250,000 to the Sandy Relief Fund. Economical Strength Looking at the economist side of the Bank, there are many reasons which make quite obvious the fact that M&T outshines many of its regional competitors on the US Top Banks list. With total assets of more than $80 billion and net income of $230 million, as reported in July 2012, it is perhaps one of the safest banks for the borrowers and customers who barely can find other competing finance institutions which suits their banking needs and upon which they can trust in hard economic times. (M&T Bank : Facts & Figures) Much of the high-worth assets owned by M&T have been acquired by it in the past few decades. In 2003, $3.1 billion acquisition of Allfirst Financial led way for M&T to grip stronger its footing in the Mid-Atlantic states of America. (Kruger) As of July 17, 2012, M&T Bank was reported to own deposits worth $62.5 billion, earned net annual income of $233 million and loans and leases amounted to $62.9 billion whereas the bank’s equity capital stood at $9.6 billion. (M&T Bank : Facts & Figures) The statistics and figures also speak in favor of the economical strength of M&T Bank. Although not confirmed from an authentic source, M&T is also reported to have been one of the only two banks in the region which did not lower its dividend during the 2008 crisis. Many honors and awards have also been received by M&T Bank which further outlines its excellence in the banking field and its high economical sustainability capabilities. The Baltimore Washington Corridor Chamber of Commerce termed M&T Bank as "Business of the Year" in 2008 while the Syracuse SBA District awarded M&T Bank with the title of "Patriot Lender of Year" in 2010 for being the most dynamic lender to veteran-owned businesses. All these achievements signify M&T’s strength which it has built up during the long span of time after its inception. However, although a little room is there, but reforms can be brought in to further improve the economic potency of the bank to escalate it from the twentieth position to the first rank amongst the leading bank holding companies in the region. Works Cited Osae-Brown, Anthony. "Banking on sustainable business practices."BusinessDay. N.p., 24 Mar. 2011. Web. 24 Nov. 2012. . "M&T Bank : Facts & Figures." M&T Bank : Newsroom, Media Contacts, Press Releases. N.p., n.d. Web. 24 Nov. 2012. . Bouma, Jan J, Marcel Jeucken, and Leon Klinkers. Sustainable Banking: The Greening of Finance. Sheffield, UK: Greenleaf Pub, 2001. Print. Yahoo! News. "M&T Bank Helps Housing Groups Access $3.7 Million in Affordable Housing Grants - Yahoo! News." Yahoo! News - Latest News & Headlines. N.p., 25 Oct. 2012. Web. 24 Nov. 2012. . Kruger, Daniel. "M&T Bank - Forbes.com." Information for the World's Business Leaders - Forbes.com. N.p., 1 Sept. 2006. Web. 24 Nov. 2012. . Works Cited Pollitt, Katha. “Why Boys Don’t Play With Dolls.” Read More