Top four banks' new lending falls

China's top four State-owned banks extended 166 billion yuan ($26.42 billion) in new loans in September, down from 220 billion yuan in the previous month, the 21st Century Business Herald newspaper reported Thursday.

Citing unidentified sources, the paper said the reason for the slowdown in lending was due to tight liquidity at the quarter-end and after the central bank instructed some banks to stop selling commercial paper at a discount to raise funds.

China's "Big Four" banks account for between 30 to 40 percent of total bank lending in the world's second largest economy.