The framework for asset encumbrance reporting as set out in the ITS on supervisory reporting comprises reporting requirements on the extent to which assets are encumbered. The objective is to ensure a harmonised measure of asset encumbrance across institutions. An asset is considered encumbered if it has been pledged or if it is subject to any form of arrangement to secure, collateralise or credit enhance any transaction from which it cannot be freely withdrawn. The measure is designed especially to capture the risk that institutions may re-pledge collateral, rendering it unavailable for liquidity coverage in the event of credit defaults. The reporting obligations call for different levels of detail, depending on institution size and degree of asset encumbrance.