Currently, personal consumer loans account for about a quarter of ICBC's total loans, said Yang Kaisheng.

"We will see a significant increase in that ratio over the next five years," Yang told 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.

Polysilicon is the main raw material for the solar power sector. China is home to some of the world's top solar players including Suntech Power and Trina Solar.

Separately, Yang said some banks may come under pressure if the central bank further increases the required reserve ratios for lenders.

"Banks' tolerance levels of higher required reserve ratios are different. Depending on their financial strength, the deposit structure, as well as the asset structure, the impact (of further reserve ratio hikes) on banks will vary," Yang said.

China has limited room to further increase lenders' required reserve ratio, which is already at a record high, Li Lihui, president of the Bank of China , the country's fourth-biggest bank, told reporters on Saturday.

China has raised required reserves eight times since early 2010, driving the level to 19.5 percent for big banks.