LONDON, Sept 28 Reuters Britain set out plans on Thursday to ease key banking and insurance rules in the latest attempt to boost its vital financial sector following the country39;s departure from the European Union.

Brexit has cut off Britain39;s finance industry, which accounts for about 12 of UK economic output, from much of the EU and sector officials want the government to speed up reforms to help it remain globally competitive.

London39;s financial hub also faces tough competition from New York in company listings, and a survey on Thursday showed Singapore is now almost neckandneck with the British capital in global financial centre rankings.

Continuing with the Edinburgh Reforms outlined in December, the finance ministry set out a public consultation on proposed secondary legislation to implement recommendations made in a review conducted by a panel led by Keith Skeoch, a former investment fund boss.

The draft legislation proposes to increase the threshold at which socalled ringfencing applies to banks from 25 billion pounds 30 billion to 35 billion pounds.

Britain introduced the ringfencing rule in January 2019 following the costly taxpayer bailouts of banks during the global financial crisis over a decade ago. It aims to ensure that deposits are safe even if riskier investment banking activities outside the ring fence lose value. That adds costs for banks.

UK financial services minister Andrew Griffith said the planned changes would make the rule more…