US companies have been in debt for over twenty years

WASHINGTON. The US Federal Reserve (Fed) has pointed to potential weaknesses in the country's financial system and said US corporate debt was at its highest level in more than two decades, with rising risky debt.

The Fed's report, released Wednesday, is its first assessment of the stability of the US financial system.

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Ten years after the financial crisis, the new Central Bank report highlights excessive lending to households and businesses, a high level of bank liabilities and high prices of equities and other assets above their fair value.

US corporate debt has reached historically high levels and the growth of riskier corporate forms has accelerated recently, the Fed report said.