23. The fundamental concepts described below provide supervisory guidance on how banks should utilise common elements of the credit risk management process to allow for high-quality and robust assessments and measurements of ECL. These concepts also promote consistency in the assessment and measurement of credit risk, development of accounting estimates and assessments of capital adequacy.

Principle 1 – Board and management responsibilities

A bank's board of directors [See the Committee's guidance on Corporate governance principles for banks (available at www.bis.org/bcbs/publ/d328.pdf) for further discussion on the role of the board.] (or equivalent) and senior management are responsible for ensuring that the bank has appropriate credit risk practices, including an effective system of internal control, to consistently determine adequate allowances in accordance with the bank's stated policies and procedures, the applicable accounting framework and relevant supervisory guidance.