The Greenlining Institute, charging that Sumitomo Bank has fulfilled its promise to make loans in low-income areas, urged regulators Thursday to lower its Community Reinvestment Act grade to "substantial noncompliance."

"We want the equivalence of daily oversight by the Federal Deposit Insurance Corp.," said Robert Gnaizda, general counsel of the San Francisco-based activist group. "That is what must and should be done."

Donald E. Reid, chief compliance officer at Sumitomo, said the bank is living up to the agreement.

"We are meeting our goals and we intend to do even more," he said. He declined to comment further, saying he has not seen the Institute's protest.

FDIC examiners are reviewing the CRA performance of the Japanese bank's California subsidiary. The bank received a "satisfactory" grade in its last exam, up from a "needs to improve" rating in 1992.

The Greenlining Institute entered a long-term CRA deal with Sumitomo in January 1993.

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