Gu Shu, former vice president of Industrial and Commercial Bank of China (ICBC), was appointed president of the biggest bank in China on Sept. 12, insiders told The Beijing News. However, the formal appointment process remains to be completed.

Gu, 49, will be the youngest leader among China's top five banks; the other four big state-owned banks are all led by men aged 50 and above. Bank of China President Chen Siqing is 56, Agricultural Bank of China President Zhao Huan is 52, China Construction Bank President Wang Zuji is 58 and Bank of Communications President Peng Chun is 54.

Gu graduated from Shanghai University of Finance and Economics with a doctorate in economics in 1998. He has worked at ICBC for 18 years. Gu was once the leader of branch banks, and was also involved in stock listing of the ICBC. He is an expert in accounting.

Challenges facing the new president may include the nonperforming loan (NPL) provision coverage issue, as well as e-banking development.

ICBC'S 2016 interim results indicate that, at the mid-point of 2016, the bank's NPL ratio was 1.55 percent, representing a decrease of 0.11 percentage points from the end of the first quarter. However, provision coverage ratio for NPLs dropped to 143.02%, lower than 150%, a redline set by China's banking regulator.

ICBC launched brand new e-banking services on Sept. 8. However, the bank faces fierce competition from other online financial services like Alipay and TenPay. It was reported that active users of Alipay exceeded 270 million at the end of May.

Insiders are optimistic about Gu, who possesses rich experience in international business, Internet banking and comprehensive management.