European banks will emerge from stress tests in stronger positions, the European Central Bank’s top bank oversight official said in an interview with Italian weekly Milano Finanza.

The results will reflect the better starting point of European banks, with much higher levels of capital and much stronger and more reliable quality of assets, Andrea Enria was cited as saying in a report published Saturday.

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The assessment jointly conducted by the European Banking authority and the ECB is a key exam for lenders because it gives insight into their preparedness to weather shocks and also feeds into their capital requirements. Results will be announced by the end of month.

While European banks must continue to pay “very close attention” to risks, the system has restabilized following the Silicon Valley Bank and Credit Suisse AG crises, Enria said. Capital levels are satisfactory, liquidity levels are robust, asset quality is better than ever and lenders are in a position to achieve returns above the cost of capital in the coming months and years.

Enria reiterated that the ECB is focused on liquidity after the recent crises, saying that supervisors will increase controls from September.