UPDATE 1-ZKB says has financial means to resolve tax probe

* ZKB confident cooperative approach will help resolve US tax probe

* ZKB doesn't comment on whether reserves set aside for probe

* Bank says should have said no to US funds earlier

ZURICH, Feb 10 (Reuters) - Swiss cantonal bank Zuercher Kantonalbank said it has the financial means to resolve its position in a U.S. probe into hidden offshore accounts for wealthy Americans, many of whom used Swiss banks to dodge taxes.

"Zuercher Kantonalbank is one of the most secure banks in the world. We have the resources and the willingness to resolve this," ZKB Chief Executive Martin Scholl told a media conference on Friday.

Scholl declined to elaborate on whether any of ZKB's 130 million Swiss francs in reserves set aside in 2011 were intended for the U.S. probe, which was kicked up a notch last week when private bank Wegelin was indicted by U.S. prosecutors for aiding tax offenders.

ZKB, which is controlled by the government of Zurich, admitted it should have said no earlier to some of the 16 billion Swiss francs of net new assets which flooded into the bank in 2008, when the U.S. began ramping up pressure on UBS . The move sent nervous clients fleeing from UBS, and many opened accounts with rivals such as ZKB.

UBS eventually averted criminal charges through a deferred prosecution agreement, and handed over data on alleged tax dodgers and cheats to U.S. officials with the Swiss government's cooperation.

Now, in a second wave of the probe, at least eleven banks including Credit Suisse, Julius Baer and ZKB are being investigated by U.S. tax authorities for their role in offering hidden offshore accounts.

ZKB, which said the tax evasion probe presents a major challenge for the bank as well as for Switzerland's banking industry, said it is individually negotiating with U.S. officials. CEO Scholl declined to elaborate on ongoing talks.