UPDATE 1-Bundesbank's Dombret rejects calls for QE in euro zone

* Says QE would be "rife with problems"

* Sees German economy cooling, risks from euro crisis

(Adds Dombret quotes, background)

FRANKFURT, Oct 8 (Reuters) - Germany's Bundesbank on Mondayrejected calls from the International Monetary Fund for the ECBto consider tackling the euro zone crisis with a policy of"quantitative easing" - effectively, printing money.

The IMF called for the European Central Bank to considerquantitative easing, or QE, in a report issued in June, and haspushed the idea again since.

Speaking ahead of the IMF's annual meeting, held later thisweek in Tokyo, Bundesbank board member Andreas Dombret restatedthe German national central bank's view that euro zone countriesmust tackle the bloc's debt crisis by pursuing reforms.

"In this context, the Bundesbank sees explicit suggestionsby the IMF critically," Dombret said in a statement.

"The calls by the IMF that there should be monetary easingby quantitative easing are rife with problems as theyredistribute insolvency risks and are close to monetaryfinancing of governments." The ECB itself has said consistentlythat financing of governments is prohibited by its rules.

The Bundesbank, the biggest of the 17 euro zone nationalcentral banks that are stakeholders in the ECB, has also opposedthe ECB's new bond-buying programme - dubbed "Outright MonetaryTransactions", or OMT.

"The Bundesbank is critical of the IMF's repeated policyrecommendations that often over-emphasise the responsibility ofmonetary policy in solving the current economic policychallenges," Dombret said.

Bundesbank President Jens Weidmann, who sits on the ECB'spolicymaking Governing Council, said separately that part of thesuccess of central banks is that they recognise their limitsinstead of embarking on too many tasks during a crisis.

Turning to the German economy, Dombret saw a further coolingof activity this year.

"Furthermore, there are increasing risks for 2013," he saidin the statement.

"In particular, a continuation or intensification of thecrisis situation in the euro area could increase the loss inconfidence and have an increasing impact on the domestic economyand the labour market."

(Reporting by Sakari Suoninen; Writing by Paul Carrel; Editingby Catherine Evans)

((sakari.suoninen@thomsonreuters.com)(+49 69 7565 1267)(ReutersMessaging: sakari.suoninen.thomsonreuters.com@reuters.net))