The Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China and China Construction Bank saw new loans fall by 10 billion yuan, 18 billion yuan, 6 billion yuan and 5 billion yuan, respectively.

Shenyin & Wanguo Securities attributed the shrinking credit to the central bank's determination to tighten liquidity, which resulted in fewer loans.

The Shanghai Interbank Offered Rate (SHIBOR) overnight rate, a basic gauge of interbank borrowing costs, has been rising since the beginning of the month, hitting a record high of 13.44 percent on Thursday.

The first ten days of the month saw an unsustainable and rapid surge in new loans, the newspaper said.

A drop in deposits also weakened the foundation for credit expansion, Shenyin & Wanguo Securities added.