Bank lending could decelerate to between 400 and 600 billion yuan in July despite a central bank commitment to maintaining a loose monetary policy, analysts said.

"A big fall from the monthly levels in the first half is bound to take place in July, as banks usually rein in lending after a credit burst in June," Dong Xian'an, chief economist with Industrial Securities, said, attributing the slowdown in loan creation to seasonal adjustments.

New yuan loans in July, though it could be significantly lower than the average monthly level of 1.23 trillion yuan in the six months to June, will maintain a strong growth momentum compared with last year, registering a year-on-year growth of 34.5 percent, Dong said.