* Nikkei extends losses, down 1.2 pct
TOKYO, May 13 (Reuters) - Japan's Nikkei average extended losses on Friday as bank shares tumbled after comments by the nation's top government spokesman sparked concerns that banks are likely to be asked to ease troubled Tokyo Electric Power Co's loan burden.
Chief Cabinet Secretary Yukio Edano made the comments after the government set up a fund with taxpayer money to help Tokyo Electric compensate victims of the crisis at its tsunami-crippled nuclear plant and avoid financial collapse.
"The accident occurred on March 11. Accidents like this are factored into loans made prior to that. Naturally, I expect financial institutions to be asked for cooperation in light of Tokyo Electric's new financial standing," Edano told a regular news conference. [ID:nL3E7GD0D0]
The Nikkei dropped 1.2 percent to 9,601.66 while the broader Topix index shed 1.4 percent to 837.22.
"Banking shares are pulling the Nikkei down on Edano's comments," said Hideyuki Ishiguro, a supervisor at Okasan Securities.
Shares of Tepco's main creditor bank, Sumitomo Mitsui Banking Corp fell 4.3 percent to 2,440 yen and Japan's biggest bank by assets, Mitsui UFJ Financial Group fell 3.6 percent to 381 yen. (Reporting by Antoni Slodkowski; Editing by Edwina Gibbs)