6.1 This chapter provides feedback to responses to Chapter 10 of consultation paper (CP) 16/22 - Implementation of the Basel 3.1 standards, which described the implications of the proposed changes to the Pillar 1 risk-weighting framework for the Prudential Regulation Authority's (PRA) Pillar 2 framework [The PRA's methodologies for setting Pillar 2 capital requirements are set out in full in PRA statement of policy - The PRA's methodologies for setting Pillar 2 capital, July 2015.].

6.2 CP16/22 did not contain any policy proposals for Pillar 2, but it set out the topics the PRA is considering so that the Pillar 2 requirements have been updated as necessary to implement the Basel 3.1 standards. In particular, it outlined the PRA's principle that it would not double count capital requirements for the same risks in both Pillar 1 and Pillar 2A.

6.3 The PRA received forty-seven responses related to Pillar 2, including requests for further clarity on the timing and details of the intended review of Pillar 2A methodologies, and details on how and when firms' Pillar 2 capital requirements would be adjusted ahead of the implementation of the Basel 3.1 standards to address double counts. The PRA also received responses related to specific elements of the Pillar 2 framework, including on individual Pillar 2A methodologies, the refined methodology to Pillar 2A [The methodology is set out in policy statement 22/17 - Refining the PRA's Pillar 2A capital framework, October 2017.] and buffers.