WASHINGTON - Federal Deposit Insurance Corp. Chairman Donna Tanoue suggested Monday that federal regulators consider replacing the unpopular investment component of the three-part Community Reinvestment Act exam with a test that evaluates banks' community development activities as a whole.

"In this way, a bank could compensate in one community development activity for lack of opportunity in another," Ms. Tanoue said in a speech to community development officers and activists. "Or a bank could focus on one activity more than another to obtain a high rating. And banks would no longer have to worry about whether they have 'too many loans, not enough investments.' "

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