Bank regulators in Venezuela say President Hugo Chávez's government has nationalised three small private banks: Inverunión Banco Comercial, Banco del Sol - Banco de Desarollo and Mi Casa. In addition, two other financial institutions which the government siezed control of last month are to be closed.

According to the government, the banks concerned have such serious organisational problems that 'they are unable to meet their short-term obligations'.

Last year, eight small and medium-sized banking institutions were nationalised. The Venezuelan government currently controls around 25 percent of the banking sector.

 Photo: President Hugo Chávez of Venezuela (flickr / ¡quecomunismo!)