People's bank of China is mulling more unconventional tools to channel credit into the economy, after three cuts to interest rates and two to the reserve requirement ratio had limited results.

According to the central bank, both total social financing and renminbi loans have steadily declined since the beginning of the year.

PBoC said earlier this week that it used pledged supplementary lending (PSL) to offer loans to China Development Bank, a policy lender.

This program was created last year to provide cheap funding to the policy lender as part of its targeted easing program.

The central bank has offered more than 260 billion yuan through PSL during the first five months this year, with the current cost of interest set at 3.1 percent.