BEIJING -- New lending by China's four biggest banks totaled nearly 177 billion yuan ($28.66 billion) as of June 16, shrinking by about 40 billion yuan from June 10, the Shanghai Securities News reported Saturday.

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.