Nov. 28 (Bloomberg) -- Industrial & Commercial Bank of China Ltd., the nation's largest, set up a 2 billion yuan ($271 million) leasing unit to offer aircraft and ship financing as it seeks to broaden revenue sources.

 ICBC Financial Leasing Ltd., based in the Tianjin Binhai district, is the first leasing firm in China wholly owned by a domestic bank, ICBC said in a statement today. The 2 billion yuan represents the unit's initial capital.

China lowered the capital requirement for financial leasing companies to 100 million yuan ($14 million) in February from 500 million yuan, seeking to nurture domestic contenders in an industry foreign investors dominate. Expansion into leasing will help make banks more competitive and enlarge their client base, the banking regulator said.

China opened its financial leasing industry to global competitors as part of its agreement to join the World Trade Organization in 2001.

Aircraft and ship purchases are often funded though financial leasing. Leasing aircraft or ships lets companies expand and replace aging planes and vessels more quickly, while using less of their own money.

China, which aims to overtake South Korea to become the world's biggest shipbuilder by 2015, currently holds 30 percent of ship orders globally by deadweight tonnage.

The nation's commercial aircraft fleet will probably more than triple to 4,000 planes by 2020 from 1,039 at the end of last year, according to the General Administration of Civil Aviation.

Bank of China, the nation's third largest, acquired Singapore Aircraft Leasing Enterprise for $965 million a year ago, part of its strategy to diversify into non-interest income.