From bake sales to multimillion-dollar contributions, banks of all sizes have been doing their part to provide aid to the tsunami-ravaged areas of southern Asia.
The industry has contributed at least $10 million to the cause, and the amount will probably swell. Dozens of banks are collecting donations from employees and customers, and they are pledging matching funds.
Donald G. Ogilvie, the American Bankers Association’s president and chief executive, said that usually few U.S. banks contribute to international efforts. But many felt they had to do something in this case, given the enormous devastation of the tsunami.
“What’s surprising is the overwhelming response directed to overseas countries that are not connected to the banks’ markets,” Mr. Ogilvie said. “This shows the real care and concern that virtually all Americans feel about the tsunami.”
Not surprisingly, the largest banks are giving the largest amounts. The Citigroup Foundation contributed $3 million to the Red Cross and local organizations, and the Bank of America Charitable Foundation contributed $500,000. B of A expects to donate another $1 million through matching employee donations.
Sovereign Bancorp of Philadelphia has donated $50,000 to the American Red Cross and collected $115,000 in donations from employees and customers in the past two weeks. The $22 billion-asset Astoria Federal Savings of Lake Success, N.Y., is donating $100,000 to United Nations Children’s Fund and matching its employee donations 2 to 1.
Smaller banks are pitching in as well.
The $898 million-asset Metro-Bank in Houston is matching donations of up to $50,000 (about 2% of MetroBank’s third-quarter income) from its employees, customers, and anyone else visiting one of its branches to contribute.
The $204 million-asset McCook National Bank in Nebraska held a bake sale last Friday to raise funds to send to the Red Cross. It raised $647 from the sale and another $750 of straight donations, both of which McCook will match.
Lisa Felker, the $204 million-asset bank’s director of human resources, organized the drive. She said McCook has also done bake sales for the American Cancer Society’s Relay for Life.
“It’s a great way to get the community involved, and everyone always responds very well,” Ms. Felker said.
Washington Trust Co. of Westerly, R.I., began selling ribbon bracelets Tuesday, with all the proceeds being donated to the Red Cross. Students at a local high school came up with the idea, and through a teacher they were able connect with the $2.2 billion-asset Washington Trust and sell the bracelets at its branches. The bank also donated $10,000 to the Red Cross, and its 16 branches are serving as a collection point for additional contributions from the community.
Commerce Bancorp in Cherry Hill, N.J., started a program called Coins for Caring. Customers using Commerce’s coin-counting machines are encouraged to donate a portion of their change to a tsunami relief fund. They can also make straight cash and check contributions at branches of the $30 billion-asset company.
“I think customers have been glad to have a place to come to make contributions, since so many people do not know where to give,” said David Flaherty, a vice president at Commerce.
Commerce also pledged $50,000 to the relief efforts.
Wells Fargo & Co. is also matching employee donations. Originally it said that it would match up to $250,000 in donations, but after only a week, employees exceeded the $250,000 mark so the company upped its matching limit to $500,000.
“The generosity of our team members is inspiring,” Wells chairman and CEO Dick Kovacevich said in the press release.
Wells Fargo is also waiving its $8 remittance fee for funds transferred to India through Wells Fargo via ICICI Bank in India until Jan. 31. The San Francisco company said in a press release that it wanted to encourage customers to send money to friends and family in India affected by the disaster.
First Data Corp.’s Western Union Financial Services Inc. has instituted a flat fee of $7 to transfer money to Indonesia, Malaysia, Maldives, Sri Lanka, Thailand, and the affected areas of India until Feb. 10. People typically transfer $300 to $500 to Indonesia, and a $500 remittance normally costs $43.
Additionally, the Western Union Foundation donated $1 million to the International Federation of Red Cross and Red Crescent Societies.
