Chinese banks extended 1.25 trillion yuan ($180 billion) in new yuan loans in August, accelerating from 679 billion yuan in July, data released by the People's Bank of China (PBOC) on Friday showed.

Broad money supply, or M2, increased 12.2 percent in August from a year earlier, 0.2 percentage point higher than July, PBOC data showed, while the M0, the amount of cash in circulation went up 14.3 percent from a year ago to 9.72 trillion yuan.

The M1, which covers cash in circulation plus demand deposits, hit 66.46 trillion yuan, a year-on-year increase of 6.1 percent.

Household loans increased by 458 billion yuan from 121.7 billion yuan in July, while corporate loans in August jumped to 875 billion yuan from 287.7 billion yuan.