Within Ind-AS, Ind-AS 109 with Expected Credit Loss approach allows the 3/6  BIS central bankers' speeches  management to exercise discretion and judgement in determining the provisioning requirement for their financial assets. Such flexibility and forward-looking nature of assessment, however, poses the ‘model risk’, i.e., the model may rely on incorrect assumptions and may be far away from representing the real-life scenarios.
Already well ahead of this time, the ECB and national supervisors started practical preparations to ensure timely adoption of supervisory responsibilities by the SSM. Thus we have got a “flying start” for the whole project. As a concrete step, the ECB Governing Council nominated Ms Danièle Nouy for Chair of the Supervisory Board of the new Single Supervisory Mechanism.