Leveraged loans and loans to oil & gas companies continue to represent a large percentage of the problem credits.
The benchmark rate for $350 trillion worth of financial products worldwide has risen nearly 0.40 percentage point over the past year.
The new agreement will boost the equity portion of the deal to 40% from 33%.
But the Shared National Credits Review also found “improved compliance” with federal leveraged lending guidelines in the second half of this year.
S&P estimates that China's corporate debt pile, now at 160% of GDP, will climb 77% to $28.8 trillion over the next five years.
Bank's credit underwriting standards loosened considerably in 2014, especially among commercial loan products, says the OCC.
Continued outflows from mutual funds and a slowdown in CLO issuance could pose a problem for issuers in 2015.
Leveraged loans show evidence of "risk management weaknesses," including dated valuations and poor credit analysis, regulators said in an annual review.
The bank's underwriting and sale of leveraged loans may not be in compliance with regulatory guidance issued just last year.
Most new leveraged loans are covenant-lite and carry ratings well-below investment grade from Standard & Poor's.
Loan issuers with risky or large deals are having to bump up spreads and increase discounts to clear the market.
