China's new RMB-denominated loans were RMB 700 billion in February, around 50% less than in January, the China Securities Newspaper reported today, citing unnamed sources familiar with the situation as saying.

The sources said that the total amount of new RMB loans in February dropped significantly due to the Chinese New Year holiday and the banking regulator's measures to curb credit growth. 

Reportedly, China's Big Four banks, Agricultural Bank of China Ltd, Industrial and Commercial Bank of China<601398><1398>, China Construction Bank Corp<601939><0939>, and Bank of China<601988><3988> extended a combined RMB 294 billion loans in February.

The China Banking Regulatory Commission, the country's banking watchdog, urged China's banking industry to curb credit expansion and keep a close eye on the real estate market in a bid to strengthen risk prevention and control.

Reportedly, last year, Chinese banks extended a total of RMB 9.59 trillion in new loans, RMB 4.69 trillion more than in 2008.