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Since the release of the last Financial Stability Report (FSR) in January 2014, the financial sector has showed signs of improvement. Despite credit risk remaining high, the level of non-performing loans(NPLs) has declined since September 2013. Furthermore, even though the overall loan portfolio of domestic lending institutions contracted slightly, the mortgage market remained an area of growth across the financial system. At the same time, available funding continued to shift from the private to the public sector. In addition, growth in deposits was moderate and resulted in increased liquidity in the financial system, while capital buffers remained well in excess of the requirements and institutions continued to generate profits.