The Federal Reserve’s annual stress test found that the largest U.S. banks could withstand more than $708 billion in losses during a severe global recession while continuing to operate and lend.

All 32 banks tested stayed above minimum capital requirements even under a harsh scenario involving rising unemployment, sharp drops in home and commercial real estate prices, and major loan losses.

Key losses were concentrated in credit cards, business loans, and commercial real estate, but banks’ overall capital levels remained strong.

Fed officials said the results highlight the resilience of the banking system, though the test will not immediately affect capital requirements due to regulatory changes, CNBC has reported.

Analysts noted that upcoming banking rule updates may have more impact on capital standards than this year’s stress test results.