Chinese banks extended about 600 billion yuan ($91 billion) in new local-currency loans in the first week of 2011, and lending in January could reach 1 trillion yuan, Caijing magazine reported on Wednesday, citing analysts.

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It also cited unnamed bankers as saying that officials had informed banks of their respective lending quotas for the first quarter and that total credit issuance in 2011 "will not be small, but will be a bit tighter than last year."

Chinese banks are set for their customary early-year lending blast and the ritual is threatening to flood the economy with cash just as the government tightens policy to curb inflation.

Banks lent 7.95 trillion yuan in 2010, overshooting Beijing's target of 7.5 trillion yuan. China finished the year with money growth still running too fast, underscoring the need for more decisive tightening to keep inflation in check.