China orders some banks to lift reserve ratio: Sources

China's central bank has ordered at least two banks to lift their required reserve ratios by 0.5 percentage point, in an apparent effort to curb rampant lending so far this month, three industry sources said on Wednesday.

The People's Bank of China has instructed CITIC Bank, the country's seventh-largest bank, and China Everbright Bank, a Beijing-based medium-sized lender, to increase their required reserves by 50 basis points, according to the sources.

At least one of China's Big Four lenders, Industrial & Commercial Bank of China or Bank of China, has received the instruction too, said the sources, who declined to be named due to the issue's sensitivity.

Because they are required to lock up a greater proportion of their deposits with the central bank, the affected banks will have less cash to extend as loans.

Bank lending surged 600 billion yuan ($87.88 billion) in the first week of January alone, according to domestic media, apparently prompting the central bank to raise reserve requirements for all banks by 50 basis points from January 18.

Economists believe banks have already lent over 1 trillion yuan so far this year.