* Warsaw banks stocks fall further after initial rebound * Shares in troubled Getin Bank hit record low * Polish regulator committee says bank system is safe * KNF scandal, Brexit continue to weigh on zloty By Sandor Peto BUDAPEST, Nov 19 (Reuters) - Warsaw shares extended declines on Monday, led lower by banks, as regulators tried to assure investors that a bribe scandal linked to a troubled bank would not upset the financial system. The Polish banking shares index, after an initial rebound from Friday's 19-month low, was down 0.75 percent by 1032 GMT. Warsaw's broader stock index was down 0.2 percent. The index has plunged about 10 percent since last Tuesday, when the head of the financial markets regulator KNF, Marek Chrzanowski, stepped down. He resigned after the owner of Getin Noble Bank, Leszek Czarnecki, accused him of trying to extract a multi-million dollar bribe from him. Chrzanowski denies the accusations. On Friday Polish central bank governor Adam Glapinski, who proposed Chrzanowski for the KNF job, denied speculation that he would also resign. Later, the head of Poland's ruling Law and Justice party, Jaroslaw Kaczynski, was quoted by the tabloid Fakt as saying that Prime Minister Mateusz Morawiecki would not have to quit over the scandal. The influential Financial Stability Committee said on Monday that Poland's financial system was stable, but it was ready to take action if needed. But the bank shares index extended its losses. Among them, loss-making Getin, Poland's ninth biggest lender by assets, lost a further 12 percent to hit a record low. The zloty extended Friday's losses, shedding 0.2 percent against the euro, to trade at 4.323. The scandal has weighed on the currency, along with worries that Britain's looming exit from the European Union could hurt Polish trade, analysts said. "While the EURPLN does not look greatly mis-priced currently, we cannot rule out further bouts of volatility until the scandal settles," Erste analysts said in a note. According to data released on Monday, Poland's corporate sector wages rose by 7.6 percent in annual terms in October, above an analysts' forecast of 6.7 percent. The labour market remains tight and wage growth might even accelerate, Santander bank economists said in a note. The Polish central bank, however, is not expected to start to increase its record-low interest rates any time soon, with inflation still below the mid-point of its 1.5-3.5 percent target. The zloty's weakness weighed on the forint, which eased by 0.1 percent, dealers said, even though some market participants, like analysts in a Raiffeisen note, expect Moody's to upgrade its sovereign rating for Hungary on Friday. The Hungarian central bank is expected to keep rates on hold at a planned meeting on Tuesday. "I do not expect hawkish comments either. The forint moved in tight ranges, and that is perfect for them," one dealer said. CEE SNAPSHOT AT MARKETS 1132 CET CURRENCI ES Latest Previous Daily Change bid close change in 2018 Czech <EURCZK= 26.0000 26.0040 +0.02% -1.76% crown > Hungary <EURHUF= 321.7700 321.5000 -0.08% -3.37% forint > Polish <EURPLN= 4.3230 4.3141 -0.21% -3.39% zloty > Romanian <EURRON= 4.6658 4.6675 +0.04% +0.30% leu > Croatian <EURHRK= 7.4260 7.4285 +0.03% +0.06% kuna > Serbian <EURRSD= 118.2000 118.2500 +0.04% +0.25% dinar > Note: calculated from 1800 CET daily change Latest Previous Daily Change close change in 2018 Prague 1080.92 1080.530 +0.04% +0.26% 0 Budapest 39260.84 39328.39 -0.17% -0.30% Warsaw 2155.35 2165.46 -0.47% -12.43% Bucharest 8554.30 8574.88 -0.24% +10.32% Ljubljana <.SBITOP 819.22 817.42 +0.22% +1.59% > Zagreb 1748.90 1756.44 -0.43% -5.10% Belgrade <.BELEX1 745.36 745.70 -0.05% -1.90% 5> Sofia 594.55 595.31 -0.13% -12.24% BONDS Yield Yield Spread Daily (bid) change vs Bund change in Czech spread Republic 2-year <CZ2YT=R 1.5930 0.1330 +224bps +13bps R> 5-year <CZ5YT=R 1.8470 0.0050 +206bps +0bps R> 10-year <CZ10YT= 2.1220 0.0470 +174bps +4bps RR> Poland 2-year <PL2YT=R 1.6030 -0.0320 +225bps -4bps R> 5-year <PL5YT=R 2.4960 -0.0160 +271bps -3bps R> 10-year <PL10YT= 3.2750 -0.0080 +289bps -2bps RR> FORWARD RATE AGREEMEN T 3x6 6x9 9x12 3M interban k Czech Rep 2.22 2.36 2.46 2.00 <PRIBOR= > Hungary 0.31 0.61 0.97 0.13 Poland 1.77 1.81 1.87 1.72 Note: FRA are for ask prices quotes