UPDATE 1-Venezuela intervenes in four small troubled banks

* Intervention not seen as dangerous for wider bank system

* Expected to be officially announced on Friday (Adds government quote, details)

CARACAS Nov 19 (Reuters) - Venezuela is to take control of four small banks, government sources with knowledge of the action said, citing problems of solvency and the origin of funds.

The move is not seen as causing wider problems for the financial system, analysts said.

Finance Minister Ali Rodriguez is expected to announce the intervention in Banco Canarias, Banco Confederado, Banpro and bolivar banco on Friday. The banks will continue operating under government control.

"There were problems in the demonstration of funds for the purchase, that's to say they didn't show the origin of the funds, and index insolvency," said one senior government official, who explained that one of the banks was the subject of recent takeover negotiations.

Venezuela's banking sector is dominated by 10 banks which control 70 percent of the total funds. One analyst said the affected banks are very small and the government intervention was not likely to cause further problems in the system. (Reporting by Ana Isabel Martinez; Writing by Frank Jack Daniel; editing by Carol Bishopric)