UPDATE 3-ANZ sees $200 mln hit in U.S; shares drop

(Adds more comments from briefing, analysts comments)

By Denny Thomas

SYDNEY, Feb 18 (Reuters) - Australia and New Zealand Banking Group Ltd (ANZ.AX: Quote, Profile, Research, Stock Buzz), Australia's third-biggest lender, warned on Monday it may face a $200 million hit on its exposure to a U.S. bond insurer, knocking its shares down more than 6 percent.

The charge comes days after second-ranked Commonwealth Bank of Australia Ltd (CBA.AX: Quote, Profile, Research, Stock Buzz) rattled investors by missing profit estimates due to higher provisions and funding costs.

Australian banks have enjoyed strong demand for loans on the back of 16 straight years of economic growth while a jobless rate at three-decade lows has kept a lid on loan losses.

But higher funding costs, sparked by the global credit crisis, are pushing up bad debt charges due to banks' exposure to highly geared companies such as Centro Properties Group (CNP.AX: Quote, Profile, Research, Stock Buzz) and Allco Finance Group Ltd (AFG.AX: Quote, Profile, Research, Stock Buzz).

There are concerns the trouble could spread to other banks.

"What this tells you is, if there are cockroaches in the kitchen, there could be more under the refrigerator," Paul Biddle, a fund manager with Souls Funds Management.

"The banks are saying their core underlying business is good. But their earnings are getting bitten up and chewed by the provision increase," Biddle added.