WASHINGTON — The Senate Banking Committee approved a broad regulatory reform bill Thursday on party lines, with lawmakers on both sides of the aisle vowing to continue negotiations this summer.

Chairman Richard Shelby, R-Ala., and Democrats have clashed in recent weeks over a GOP bill to provide regulatory relief for credit unions as well as small and regional banks, along with changes to the insurance industry, the Federal Reserve and the Financial Stability Oversight Council.

Democrats have repeatedly charged that the legislation goes too far, rolling back key parts of the Dodd-Frank Act. But committee members did signal that they plan to continue working on a bipartisan compromise in coming months, with the hope of getting a bill signed into law.

"Even if we report this bill on a partisan vote, I do not in any way see this as the end of the road," Shelby said at the markup. "In fact, I believe it presents another opportunity to explore areas of potential agreement before this bill goes to the Senate floor which I fully expect that it will."

The Financial Regulatory Improvement Act passed 12-10.

Democrats, meanwhile, offered a narrower substitute bill that was defeated down party lines, 10-12.

"CUNA greatly appreciates the Committee's commitment to meaningful regulatory relief for small depository institutions," said the trade group's President and CEO Jim Nussle. "We particularly appreciate that the legislation includes three specific credit union provisions and several other significant regulatory relief provisions to reduce the unnecessary and overly burdensome regulations that negatively impact credit unions, their members and their communities."

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