Beginning in 2007, governmental regulatory bodies became interested in conducting their own stress tests to insure the effective operation of financial institutions. Since then, stress tests have been routinely performed by financial regulators in different countries or regions, to ensure that the banks under their authority are engaging in practices likely to avoid negative outcomes. In India, legislation was enacted in 2007 requiring banks to undergo regular stress tests.M. Y. Khan, Indian Financial Systems, Sixth Edition (2009), 13.45. In October 2012, U.S. regulators unveiled new rules expanding this practice by requiring the largest American banks to undergo stress tests twice per year, once internally and once conducted by the regulators.Victoria McGrane, "New Rules Expand Bank 'Stress-Test' Process", The Wall Street Journal (October 9, 2012). Starting in 2014 midsized firms (i.e., those with $10–50 billion in assets) are also being required to conduct Dodd-Frank Act Stress Testing.
