Answer:
Yes, the Assessment Area Ratio test is designed for that purpose and requires that a minimum of 50% of a bank's lending (loan counts and loan dollars) must be extended within a bank's Assessment Area(s). Failure on this test is almost certain to result in a "Needs to Improve" rating. However, if a bank can demonstrate that its lending volume is adequate, it may pass this test. Comparison to other banks with depository facilities within the AA is one way of doing this.
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