UPDATE 3-La Caixa may seek new capital via listed arm

* La Caixa holding board meeting on bank move - report

* Shares in La Caixa holding company Criteria suspended

* Sector needs 46 bln euro recapitalisation-Barclays Capital (Releads with Criteria confirmation of listing plan)

By Sonya Dowsett and Robert Hetz

MADRID, Jan 27 (Reuters) - Unlisted Spanish savings bank La Caixa is considering folding its banking activities into its quoted holding company Criteria CRIT.MC in a move to meet government demands to raise private capital.

Criteria said on Thursday that it was looking at a possible reorganisation which could mean bringing La Caixa's banking business under its wing.

Shares in Criteria, which has stakes in major Spanish companies including Repsol (REP.MC), Telefonica <TEF.MC and Gas Natural (GAS.MC), were earlier suspended as the board of the Barcelona-based savings bank met to decide whether to pursue a listing or raise new funds via Criteria.

Spain's regional savings banks -- known as cajas -- have been under pressure from the Socialist government of Jose Luis Rodriguez Zapatero to find new capital urgently.

They have until September to raise capital through private investors. Otherwise the government has said it will partially take them over. [ID:nLDE70N1M0] Cajas account for around half Spain's banking system and badly need capital to flush the effects of bad loans, bankrupt debtors and falling property prices from their balance sheets.

Barclays Capital estimated they need around 46 billion euros ($63 billion), rising to 92 billion in a severe downturn.

The Bank of Spain estimated banks' potentially problematic exposure to the real estate and construction sector stood at 181 million euros at June 2010.

Criteria shares were 3.2 percent higher before the suspension. Barcelona-based La Caixa and Criteria were not available for comment.

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ANALYSIS on cajas' quest for capital [ID:nLDE70K12U]

FACTBOX on Spanish core capital ratios [ID:nLDE70O08G]

Graphic on Spanish bad loans: r.reuters.com/qac47r

Reuters BREAKINGVIEWS column [ID:nLDE70I1IT]

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Spain has told banks and cajas to boost core capital ratios to a new minimum of 8 percent, in an effort to boost confidence in its banking system and dampen expectations of the need for an Ireland-style bailout.

Among cajas left after a forced government restructuring of the sector last year, which saw their number cut to 18 from 45, only a few were seen as being able to float.

La Caixa has been flagged as the most likely to make the move and raise private capital through a listing, although Criteria has been seen as a possible vehicle for getting access to new funds without going through an initial public offering.

La Caixa has a loan book very similar to that of Santander (SAN.MC), Spain's biggest bank, and its listed unit Banesto (BTO.MC) combined. (Additional reporting by Tracy Rucinski; Writing by Alexander Smith; Editing by Dan Lalor and Erica Billingham) ($1 = 0.7296 euro)