NICOSIA, Cyprus (AP) — Cyprus' central bank chief said Wednesday that she expects the bailed-out country's top banks to pass European tests gauging their health.

Chrystalla Georghadji urged the four banks that will be examined in the so-called stress tests this year to bolster their capital buffers so that they're "fully prepared."

Among the lenders to be tested is the country's largest, Bank of Cyprus, which was at the center of international creditors' multibillion-euro rescue of the country last year. Bank of Cyprus said it would look at ways of raising more capital at its next board meeting Thursday.

Cyprus' rescue program saw large amounts of uninsured deposits in the Bank of Cyprus and the now-defunct Laiki seized and used to recapitalize the larger lender.

With confidence in the banking sector crushed, Cypriot authorities imposed capital controls to prevent a run. Most have now been lifted, but some restrictions still remain on transferring money abroad.

Georghadji said that if banks can boost their cash reserves, it would be easier for authorities to eliminate the remaining controls on money flows, which Cypriot authorities hope to get rid of by the end of this year.

She said the country's recession this year will be slightly shallower than creditors have predicted, with the economy forecast to shrink around 4 percent instead of 4.2 percent.