New local currency loans in China stood at 644.5 billion yuan last month, down from 1.32 trillion yuan in January 2014, the People's Bank of China said in a report on Tuesday.
Analysts were expecting new local currency loans in China to stand at 730 billion yuan last month.
Aggregate financing stood at 938.7 billion yuan in February 2014, compared to analysts' estimates of 1.31 trillion yuan.
M2, the broadest gauge of money supply, rose 13.3 per cent in February 2014 from the same month a year ago, up slightly from an annual rise of 13.2 per cent in January 2014.
While stemming financial risks in the economy may lead to lower short-term growth, it will help in achieving financial stability in the longer-term.
China's central bank head said that market forces are pushing freer interest rates while liberalizing of deposit rates may take a couple of years.
China has maintained a 7.5 per cent economic growth target for 2014.