* KBC wants to remain as bank and insurer in core markets
* Still sees EU ruling related to state aid by early Dec
(Updates after statement from company)
BRUSSELS, Oct 28 (Reuters) - Belgium's KBC hopes to convince the European Commission that it should remain in both banking and insurance in core markets, while reducing corporate lending and investment banking, it said on Wednesday.
KBC is one of many banks which have submitted restructuring plans to the European Commission, the EU's executive arm, but is seeking to avoid being split in two like Dutch peer ING.
KBC shares have fallen by 22.8 percent this week, following ING's announcement on Monday, with investors fearing EU regulators would force equally deep changes on the bank.
KBC shares fell 12.4 percent on Wednesday, with mounting pressure from regulators hitting shares in other European banks which accepted state aid such as Britain's Lloyds and Bank of Ireland.
KBC repeated in a statement issued late on Wednesday that it expected a ruling from the Commission by early December and gave again an outline of its proposed business plan.
"KBC remains convinced of the strength of its integrated bancassurance strategy in Belgium and in its core markets in central and eastern Europe," it said in a brief statement.
KBC, which has received 7 billion euros ($10.39 billion) in state aid to help it through the global financial crisis, would seek to pay that back through its own earnings and divestments. Raising capital by issuing shares was "not a preferred solution".
"The business plan will allow KBC to maintain its solid solvency levels," KBC said. (Reporting by Philip Blenkinsop and Antonia van de Velde; Editing by Jon Loades-Carter) ($1=.6740 Euro)