WASHINGTON -- The Clinton administration yesterday abandoned its effort to overhaul banking regulation this year, concluding that not enough time was left for Congress to act on it and that other initiatives should take precedence.

The Treasury had sought to combine several agencies that regulate banks and savings and loan institutions, so as to save money for the government and reduce the regulatory burden on financial institutions.

The decision to delay action represents a political victory for the Federal Reserve, which had bitterly fought the administration's plan because it would have stripped the central bank of much of its influence over the banking system.

Treasury officials made several concessions this spring to the Fed and the two sides had nearly reached a compromise.

But when Treasury officials began to outline the proposal this week to members of the House and Senate Banking Committees, they found limited enthusiasm and a lot of concern about Congress' need to focus on health care and to deal with two other banking bills before the November elections, said government officials who insisted on anonymity.