A risky corporate debt splurge is ­raising echoes of the financial crisis, the Bank of England fears, as officials scour the market for signs that a debt crunch could hurt banks and the wider economy.

Growth in borrowing by heavily ­indebted companies and those with “junk” credit status is rising at levels seen in sub-prime mortgages before the financial crisis and now stands at more than $1 trillion globally.

The Bank’s Financial Policy Committee (FPC) is “concerned” the surging debts could build new vulnerabilities in the financial system.

The debts, known as leveraged or covenant-lite loans, are typically packaged up and sold on.

Sir Jon Cunliffe, deputy governor at the Bank, said this shows similarities with the credit crunch.

“The things that are similar [to the sub-prime crisis] are the size and the fast rate of growth,” he told the Treasury select committee, adding that this type of lending has hit £30bn this year.

“Secondly, we’re seeing a weakening in underwriting standards. The other similarity is the packaging and distribution [of the bonds].”

He was speaking after ratings agency Moody’s warned that companies are piling on debt and making themselves vulnerable to the next downturn.

“A tight covenant structure is good for lenders. Because it inhibits the company from taking certain actions to the detriment of lenders. A loose covenant structure is generally credit negative,” said Peter Firth of Moody’s.