Parallelism Question ( Diff between adjectives, noun )

[DonPaw]

Source: OG 10th edition

The decision by one of the nation's largest banks to admit to $3 billion in potential losses on foreign loans could mean less lending by commercial banks to developing countries and increasing the pressure on multigovernment lenders to supply the funds.
(A) increasing the pressure
(B) the increasing pressure
(C) increased pressure
(D) the pressure increased
(E) the pressure increasing

[concept]

C is right.

'less lending' and 'increased pressure' are both modified nouns and are parallel.