Wellink to say banks hit if subprime crisis spreads-source

AMSTERDAM (Reuters) - Dutch central bank governor Nout Wellink will tell parliament on Wednesday that the subprime crisis is not a major problem for Dutch banks now but could hit institutions if it persists, a source with knowledge of Wellink's position said on Tuesday.

Wellink is due to testify before the Dutch parliament's finance committee on Wednesday in a hearing on the credit crisis.

"He will say that subprime risks are not a major problem for Dutch banks. Nevertheless, if market turbulence persists or spreads, Dutch financial institutions could be hit harder," the source told Reuters.

The source said Wellink's comments would largely echo what he said on a television program earlier this month, in which he urged the Dutch government to prepare for spillover effects from the U.S. economy to Europe.

A Dutch central bank spokesman would not comment on what Wellink would say.

(Reporting by Niclas Mika)