ICBC anticipates growth in consumer loans

Industrial and Commercial Bank of China expects significant growth in its personal consumer loan business over the next five years.

Its president, Yang Kaisheng, said that currently, personal consumer loans account for about a quarter of ICBC's total loans.

"We will see a significant increase in that ratio over the next five years," Yang said in a news conference in Beijing in conjunction with the annual Chinese Communist Party's consultative meeting.

The Chinese government's efforts to revamp its export-reliant economy by boosting domestic demand have led to a steady rise in wages across the country in recent years.

This month, Zhejiang province, known for its plethora of privately owned factories, said it will raise the minimum wage by 19 percent from April, joining a host of other regions in increasing salaries as living costs rise.

"We hope to realise the transformation of our development model as the economy transforms," Yang said.

State-controlled ICBC will further reduce loans to seven domestic industries, including polysilicon, steel and wind power, which are facing severe overcapacity, Yang said.

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