6.9 In CP16/22, the PRA indicated its intention to review its Pillar 2A methodologies more fully by 2024, so that Pillar 2 requirements and any corresponding reporting requirements would be updated as necessary in light of the changes from the Basel 3.1 standards to the Pillar 1 framework. The PRA also set out its principle not to double count capital requirements for the same risks in Pillar 1 and Pillar 2A.
6.10 The PRA highlighted the risk that, in the absence of any action, firms' Pillar 2 requirements would not be calibrated to their revised Pillar 1 risk-weighted assets (RWAs) on day 1. This could persist for a longer period for firms subject to a less frequent Capital Supervisory Review and Evaluation Process (C-SREP) cycle. Therefore, the PRA indicated it would consider how to avoid gaps or duplications in the Pillar 1 and Pillar 2 frameworks on day 1.
6.11 Eighteen respondents asked for more transparency on the timing and details of the Pillar 2 methodologies review for the pu
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