diff --git a/src/aave-v2/MorphoGovernance.sol b/src/aave-v2/MorphoGovernance.sol
index fb472d156..bef68e4c8 100644
--- a/src/aave-v2/MorphoGovernance.sol
+++ b/src/aave-v2/MorphoGovernance.sol
@@ -357,17 +357,6 @@ abstract contract MorphoGovernance is MorphoUtils {
         emit IsDeprecatedSet(_poolToken, _isDeprecated);
     }
 
-    /// @notice Sets a market's asset as collateral.
-    /// @param _poolToken The address of the market to (un)set as collateral.
-    /// @param _assetAsCollateral True to set the asset as collateral (True by default).
-    function setAssetAsCollateral(address _poolToken, bool _assetAsCollateral)
-        external
-        onlyOwner
-        isMarketCreated(_poolToken)
-    {
-        pool.setUserUseReserveAsCollateral(market[_poolToken].underlyingToken, _assetAsCollateral);
-    }
-
     /// @notice Increases peer-to-peer deltas, to put some liquidity back on the pool.
     /// @dev The current Morpho supply on the pool might not be enough to borrow `_amount` before resuppling it.
     /// In this case, consider calling multiple times this function.
diff --git a/src/aave-v2/MorphoUtils.sol b/src/aave-v2/MorphoUtils.sol
index 55a953660..39faa0981 100644
--- a/src/aave-v2/MorphoUtils.sol
+++ b/src/aave-v2/MorphoUtils.sol
@@ -285,18 +285,11 @@ abstract contract MorphoUtils is MorphoStorage {
 
             if (vars.poolToken != _poolToken) _updateIndexes(vars.poolToken);
 
+            // Assumes that the Morpho contract has not disabled the asset as collateral in the underlying pool.
             (assetData.ltv, assetData.liquidationThreshold, , assetData.decimals, ) = pool
             .getConfiguration(vars.underlyingToken)
             .getParamsMemory();
 
-            // LTV and liquidation threshold should be zero if Morpho has not enabled this asset as collateral.
-            if (
-                !morphoPoolConfig.isUsingAsCollateral(pool.getReserveData(vars.underlyingToken).id)
-            ) {
-                assetData.ltv = 0;
-                assetData.liquidationThreshold = 0;
-            }
-
             unchecked {
                 assetData.tokenUnit = 10**assetData.decimals;
             }
diff --git a/test/aave-v2/TestBorrow.t.sol b/test/aave-v2/TestBorrow.t.sol
index 6dea58d11..fc56b15f3 100644
--- a/test/aave-v2/TestBorrow.t.sol
+++ b/test/aave-v2/TestBorrow.t.sol
@@ -247,23 +247,6 @@ contract TestBorrow is TestSetup {
         borrower1.borrow(aUsdc, amount);
     }
 
-    function testShouldNotBorrowWithDisabledCollateral() public {
-        uint256 amount = 100 ether;
-
-        borrower1.approve(dai, type(uint256).max);
-        borrower1.supply(aDai, amount * 10);
-
-        // Give Morpho a position on the pool to be able to unset the DAI asset as collateral.
-        // Without this position on the pool, it's not possible to do so.
-        supplier1.approve(usdc, to6Decimals(amount));
-        supplier1.supply(aUsdc, to6Decimals(amount));
-
-        morpho.setAssetAsCollateral(aDai, false);
-
-        hevm.expectRevert(EntryPositionsManager.UnauthorisedBorrow.selector);
-        borrower1.borrow(aUsdc, to6Decimals(amount));
-    }
-
     function testBorrowLargerThanDeltaShouldClearDelta() public {
         // Allows only 10 unmatch suppliers.