Europe shares hit day's lows as banks slip

LONDON, April 10 (Reuters) - European shares fell to session lows by mid-morning on Thursday as a decline in banking shares gathered pace ahead of two key central bank decisions.

By 0819 GMT the FTSEurofirst 300 index .FTEU3 of top European shares was down 0.5 percent at 1,302.14 points, set for its third consecutive daily loss. Declining issues outnumbered advancers by about three to one and all but one of Western Europe's 16 major national indexes were in the red.

The DJ Stoxx index of European banks .SX7P was down 1.1 percent. Credit Suisse (CSGN.VX) fell 2.3 percent, while Royal Bank of Scotland (RBS.L) lost 1.5 percent and ING Group (ING.AS) fell 1.6 percent.

The European Central Bank and the Bank of England deliver their respective rate decisions later in the day. The BoE is widely expected to cut British rates to 5 percent from 5.25 percent, while the ECB is expected to leave euro zone rates at 4.0 percent and reiterate its concern over inflation. (Reporting by Amanda Cooper)