LIBOR Transition

Stay up to date on the latest developments, key dates, and how M&T is preparing for the transition away from LIBOR. Contact your relationship manager for more information.

Publication of LIBOR is expected to cease by the end of 2021.

This impacts many types of loans, business agreements, and systems that will need to be amended to use a new benchmark interest rate.

M&T Bank has created a dedicated LIBOR Transition Office.

With a dedicated LIBOR Transition Office, M&T is committing extensive resources toward making the necessary investments in systems, personnel, and processes required to develop best-in-class client solutions. Understanding how this impacts M&T Bank clients with LIBOR-priced credit facilities is important, and we are here to help you navigate your options. 

We'll be sure to provide updates on the LIBOR transition from the Alternative Reference Rate Committee (ARRC), convened by the Federal Reserve Board and Federal Reserve Bank of New Yorkas well as guidance on its recommended alternative – the Secured Overnight Financing Rate (SOFR).

The information made publicly available via the resources referenced on this page are for informational purposes only, and should NOT be viewed or construed as legal, accounting, tax or other professional advice. Readers should consult with their own professional advisors to discuss any information provided herein. M&T Bank is not endorsing any third party sources cited herein, and makes no representations or warranties about the accuracy or completeness of any information contained herein.

If you have questions, contact your M&T Relationship Manager.


View our LIBOR resources and insights.

Life After LIBOR

What the anticipated replacement of LIBOR as a benchmark index means for you, your business and your banking relationship.

Read More >

Resources & Insights

LIBOR Preparation

How M&T Bank will help you prepare to navigate your options during the LIBOR transition.
Read Article >
Resources & Insights

LIBOR Foundational Knowledge

The market needs a new benchmark interest rate. Learn the recommended alternative for USD LIBOR and what other rates were considered.
Read Article >
Resources & Insights

Comparing LIBOR to SOFR

There are some key differences between LIBOR and SOFR which are important to understand.
Read Article >

LIBOR Frequently Asked Questions

The London Interbank Offered Rate (LIBOR) is intended to represent the average interest rate at which a certain group of contributing global banks can obtain funding in the London interbank market. For decades, LIBOR has been and continues to be the primary global short-term interest rate benchmark. US Dollar LIBOR is used by M&T Bank and other financial institutions as a measure of its short-term cost of funds.

Global money markets were disrupted and fundamentally changed following the Great Recession, which began with the 2007 U.S. housing market downturn and prompted the Federal Reserve Bank and other central banks to intervene. Consequently, the number of interbank funding transactions in the LIBOR market declined, and the basis for determining LIBOR was and remains increasingly based on “expert judgment” rather than actual transactions. In addition, several large global banks involved with providing data used to set LIBOR have been accused of manipulating LIBOR during the same time-period. These issues have led bank regulators to begin looking for a replacement for LIBOR.

M&T, like most other market participants that use LIBOR, is in a “wait-and-see” mode as we carefully monitor industry developments. If LIBOR becomes unavailable or indeterminable, M&T’s standard loan documentation generally provides for the conversion of the interest rate to a Prime-based “Base Rate.” However, the Base Rate is only a “backstop” in the event LIBOR becomes unavailable, indeterminable, or illegal. It is not an ideal long-term replacement rate for an existing LIBOR loan. As the market comes to a consensus about SOFR (or an alternative replacement index), we will continue to have more meaningful discussions about transitioning the interest rate on a particular loan and amending credit spreads in a manner that meets both M&T’s and the customer’s needs.



Additional ARRC Resources

You can expect to hear more from M&T Bank soon as the details of the transition take shape. 

All loans, lines of credit, and all terms referenced herein are subject to receipt of a complete M&T application, credit approval and other conditions. Other terms, conditions, fees and restrictions may apply.​
Unless otherwise specified, all advertised offers and terms and conditions of accounts and services are subject to change at any time without notice. After an account is opened or service begins, it is subject to its features, conditions and terms, which are subject to change at any time in accordance with applicable laws and agreements. Please contact an M&T representative for full details.