M&T Bank, the largest bank in Western New York, will soon have to prove to federal regulators that it has enough capital on hand to continue operations in the event of economic and financial turmoil.
The Buffalo-headquartered bank (NYSE: MTB) is one of 12 financial institutions recently added to list of major banks scheduled to take part in the Federal Reserve Board's 2013 capital planning and stress testing program. M&T will be evaluated based on how much capital it would be able to lend in different scenarios.
Its plan must be submitted to the Fed by Jan. 6. In total, 30 banks will participate in the program.
M&T Bank did not have an immediate response regarding how it will prepare for stress testing. A spokesperson noted that M&T did participate in the Fed's most recent Capital Plan Review process, though that review is separate from the Fed's upcoming Comprehensive Capital Analysis and Review.
In addition to M&T, RBS Citizens Financial Group Inc. has also been added to this year's program. RBS Citizens operates Citizens Bank, the fourth-largest bank in Western New York. KeyCorp, the third-largest bank in the region, has participated in the Fed's program for the past four years.
A summary of the stress-testing results will be released in March, according to a release from the Fed.