The Federal Reserve gave KeyCorp permission to open a bank in Bedford, N.H., overriding the strenuous objections of community activists.

The activists had urged the Fed to reject the application, saying KeyCorp plans to close more than 100 branches in the next several years.

But the Fed said in an order Monday that that plan was outside the scope of its review. It also noted that KeyCorp's subsidiary banks had all received either "outstanding" or "satisfactory" Community Reinvestment Act grades.

The Fed added that the deal would not diminish competition in New Hampshire because KeyCorp now owns no banks there.

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