UPDATE 2-European banks broaden measures to combat coronavirus spread

Tom Sims and Jesús Aguado

* Deutsche and BBVA reorganise operations

* Moody's says European banks at risk

* EU bank watchdog scrutinises contingency plans

* Latest on coronavirus spread (Updates with Moody's, European Banking Authority, Lloyds, shares)

FRANKFURT/MADRID March 10 (Reuters) - European banks expanded their emergency measures to combat the spread of the coronavirus on Tuesday with Deutsche Bank and BBVA reorganising operations after employees were infected.

Deutsche Bank has split some of its trading operations across sites in Frankfurt while Spain's BBVA has shut one building at its headquarters in Madrid.

The spread of the coronavirus is increasingly disrupting financial companies' operations and adds to the impact of a weaker economy on their businesses.

"Banks will see a weakening of their loan book quality as the effects of the virus will reduce global travel and factory output, and dampen domestic demand in Europe," Moody's analyst Bernhard Held said.

The European Union's banking watchdog said it was focusing on ensuring banks can continue operating during the coronavirus crisis and was in contact with members over measures needed.

European banking stocks recovered some of their recent losses on Tuesday.

Private equity firm KKR & Co Inc said late on Monday that an employee at its London office had tested positive, causing it to temporarily close both its sites in the city.

Standard Life Aberdeen said on Tuesday it was planning to split its British and U.S. investment teams into groups and have them work separately as part of contingency planning.

Traders at the world's biggest banks began last week swapping their plush city centre offices to work from suburban outposts in New York and London, facing lengthy commutes as their employers attempt to reduce the disruption caused by coronavirus.

British bank Halifax, which is owned by Lloyds Banking Group , has shut a call centre in Northern Ireland that employs 1,000 people after a member of staff tested positive to coronavirus.

Last week, HSBC sent 100 employees home after a staff member in its research department in London tested positive. S&P Global has asked all its 1,200 employees in its Canary Wharf office to work from home after confirming the infected HSBC employee visited its office.

The measures by Deutsche on Tuesday are expected to affect dozens of people and last until at least March 27. The bank also split some operations in London on Monday, following similar moves in places including Italy and China.

"We expect no impact on our ability to operate our full range of services for our clients and recognise that this setup will require extra effort and discipline from all," Deutsche said in a memo to staff.

(Reporting by Arno Schuetze, Tom Sims and Jesus Aguado; Additional reporting by Simon Jessop, Huw Jones, Graham Fahy and Hakan Ersen; Editing by Riham Alkousaa, Thomas Escritt, Louise Heavens and David Clarke)

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