Refined methodology to Pillar 2A
6.30 In CP16/22, the PRA stated its intention to consider whether it is appropriate to retain the existing refined methodology to Pillar 2A in its current form.
6.31 Thirteen respondents requested clarification on the future of the refined methodology and expressed concerns regarding the potential increase in capital requirements if the methodology is removed. The PRA considers the refined methodology should be reviewed in light of the changes proposed to the Pillar 1 credit risk framework, and it plans to provide more details when the second near-final PS is published.
Interaction with the strong and simple framework
6.32 Six respondents asked for more clarity on the PRA's Pillar 2 framework under the strong and simple framework. As set out in PS15/23 - The Strong and Simple Framework: Scope Criteria, Liquidity and Disclosure Requirements, the PRA intends to publish its proposals on capital-related measures in Q2 2024, which would cover simplifications
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