LONDON, Jan 19 (Reuters) - Capital requirements for the retail weapons system of Britain's Banks take more often than not non harmed competition, but do make unnecessary complexity for customers, lenders and regulators, an mugwump followup aforementioned on Wednesday.

"The ring-fencing regime has had no significant impact on competition in retail banking or its submarkets," the critique commissioned by the finance ministry aforementioned in an interim program line.

The revue is operative on recommendations to increment flexibility in the rules and bring down unneeded complexity, it said.

(Reportage by Huw Jones, Editing by Louise Heavens)