M&T Bank Takes Cautious Approach to Expanding Private Credit Market

Private credit involves nonbank institutions lending directly to companies and has expanded rapidly since the global financial crisis as bank regulation tightened. For M&T Bank, private credit firms both compete for corporate financing business and seek funding from banks. The market has yet to pass through a full credit cycle, and risks could spread through lending ties between banks and funds, making exposure management particularly important.

On March 17, 2026, M&T Bank Chief Executive René Jones said the bank would participate in a slow and steady manner. As of December 31, 2025, its loans to non-depository financial institutions totaled $12.6 billion, or 9% of total loans. That included $5.6 billion extended to mortgage credit intermediaries and $3.3 billion in subscription credit facilities for private equity funds. The bank stressed that it focuses on familiar borrowers and secured lending structures.