Reuters reports that Britain launched an independent review of capital and proprietary trading rules introduced following the global financial crisis as it seeks to bolster the City of London's global competitiveness after Brexit.

Since the start of 2019 Britain requires HSBC, Barclays and other banks to "ring-fence" the retail arms of their operations with capital to shield them from any losses in their riskier, investment banking arms after taxpayers had to bail out lenders during the financial crisis.

"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 in its call for evidence.

The review was called for by the finance ministry and the independent panel is chaired by City veteran Keith Skeoch. The panel includes John Flint, former CEO of HSBC.

Banks also hold multiples of capital in their safety buffers compared with a decade ago, making them far more resilient in the face of shocks.

But any recommendations to ease ring-fencing are likely to face resistance from the Bank of England.

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.