Banks to increase lending, but keep eye on risks

China's largest banks may be stepping up the pace at which they give out credit, but they are still keeping a careful eye on risks.

Their move is in line with the country's 4-trillion-yuan economic stimulus package, in which commercial banks' credit ceilings will be abolished to channel more lending to priority projects, small firms, rural areas and technical innovation.

Chen Yuan, president of China Development Bank, said on Tuesday that the bank plans to issue a further 40 billion yuan in loans before the end of year.