UPDATE 1-Britain reviews core banking rules in light of Brexit

(Adds more detail, background)

LONDON, April 20 (Reuters) - Britain on Tuesday launched an
independent review of capital and proprietary trading rules
introduced following the global financial crisis more than a
decade ago as it seeks to bolster the City of London's global
competitiveness after Brexit.

Britain requires banks to "ring-fence" the retail arms of
their operations to shield them from any problems in their
riskier, investment banking arms.

Proprietary trading refers to banks buying and selling
stocks, bonds and other assets on their own account rather than
on behalf of a client.

"Over the last decade, UK banks have seen significant
changes to the environment in which they operate, including the
fallout from the COVID-19 pandemic, the UK’s exit from the EU,
and wider changes in the UK financial sector," the independent
review said.

The review was called for by the finance ministry and the
independent panel is chaired by City veteran Keith Skeoch.

Britain's full departure from the European Union on Dec. 31
means it no longer has to comply with the bloc's financial
rules, freeing it up to tailor regulation to UK lenders.

"This review presents a unique opportunity to assess the
observed impacts of the regulatory regimes, intended or
otherwise, for financial stability, competition,
competitiveness, and the balance between these in light of the
changes in the UK financial sector and wider economy," the
review said.

(Reporting by Huw Jones; editing by Jason Neely, Kirsten
Donovan)