By Jason Hovet and Krisztina Than

PRAGUE, March 20 (Reuters) -Hungary's forint hit an 11-week low on Monday, Warsaw's blue-chip index fell to its lowest in over four months, and Prague stocks touched a two-month low as markets digested Credit Suisse's state-backed rescue.

Shares in European banking stocks fell more than 2% in early trading before recovering ground following a weekend that saw the rescue of Credit Suisse CSGN.S by UBS UBSG.S and a coordinated central bank effort to ensure global cash flows.

Central Europe's banks fell, with some Polish banks dropping over 5%. Hungary's OTP Bank OTPB.BU also shed over 5%.

Among currencies, the forint EURHUF= led losses, stuck beyond the sensitive 400 per euro level - down 0.9% at 401.00 by 0846 GMT. The forint has given up all of its 2023 gains - which had been around 7% - this month.

"Negative news have a much bigger impact on the forint, which is due to its high Beta, and to the fact that its gains since the start of the year were due to the inflow of hot money," Magyar Bankholding said.

Hungary's central bank has maintained an 18% quick deposit rate since last October, when the forint hit record lows above 430 to the euro. Its base rate of 13% is also the highest in the European Union.

Elsewhere, the Czech crown EURCZK= was down beyond the 24 per euro level and has fallen over 1% in the last week. Poland's zloty EURPLN= dropped 0.2% to 4.7145 to the euro.

UBS's state-backed takeover of Credit Suisse Group was orchestrated to try to restore confidence in a battered sector.

Investor focus shifted on Monday to the massive hit some Credit Suisse bondholders will take.

Czech central bank Vice-Governor Jan Frait was quoted as saying in an interview with Hospodarske Noviny published on Monday that Czech banks had no significant ties to Credit Suisse and that risk to the domestic sector was small or negligible.

Prague's stock index fell over 1%, with dual-listed Austrian bank Erste Group losing over 3%. The fall in Czech banks Komercni Banka and Moneta Money Bank was less.

Warsaw's WIG20 was down 2%.

Reporting by Jason Hovet in Prague and Krisztina Than in Budapest; editing by Barbara Lewis

For related news and prices, click on the codes in brackets: All emerging market news EMRG CEEU CEE/ Spot FX rates Eastern Europe spot FX EEFX= Middle East spot FX MEFX= Asia spot FX ASIAFX= Latin America spot FX LATAMFX= Other news and reports World central bank news CEN Economic Data Guide ECONGUIDE Official rates GLOBAL/INT Emerging Diary EMRG/DIARY Top events M/DIARY Diaries DIARY Diaries Index IND/DIARY