HONG KONG, Feb 16 (Reuters) - China is set to announce a reform plan for its biggest bank, the Industrial and Commercial Bank of China (ICBC), deputy central bank governor LiRuogu said on Wednesday.

"We started reform of the state-owned banks. Two of them are already finished, the other two are on the list," Li told an international conference in Hong Kong on the fight against money landering.

"ICBC's reform plan is soon to be announced," he added.

Li would not give details of the plan, but analysts believe the government could inject up to US$50 billion into ICBC, which is riddled with bad loans following decades of politically driven lending decisions.

China injected a combined US$45 billion into the country's top foreign bank, Bank of China, and leading property lender China Construction Bank in late 2003, as it tries to shore up the banking sector and prepare it for greater foreign competition.

With the infusion of funds, Bank of China and Construction Bank have slashed their bad loan ratios to single digits, paving the way for possible share listings abroad as early as this year.

Bank of China and Construction Bank are now pushing internal restructuring in a bid to attract strategic investors.

The so-called "Big Four" banks also includes Agriculture Bank of China.

Turning around the banking sector has gained urgency as competition rise under China's WTO membership.

Li also said reforms of China's rural credit cooperatives were progressing smoothly.

The bad loan ratio of the credit cooperatives, which number over 26,000, stood at 23.1 percent at the end of 2004, down 6.27 percentage points from the beginning of last year.