Chavez advised the country's private banks to make credit more available to the destitute unable to afford food and shelter rather than indulge financiers in massive profits.
"If private Venezuelan banks don't follow the path, comply with the constitution and the laws, they'll have to be sanctioned," he said.
Chavez went on to say that Venezuelan banks have to fall in line with the social reforms sought under his Bolivarian Revolution.
"The only way this government and this socialist project will accept private banks is if they fulfill their duty to intermediate and join the government to promote economic development."
The Venezuelan leader has recently nationalized the country's three biggest creditors in a bid to bring the institutes under closer government scrutiny.
The anti-capitalist leader defended his banking policies, saying, "We will have more economic power."
Under the leadership of President Hugo Chavez, Venezuela has also nationalized the country's key telecommunication companies, electricity and steel plants, major oil projects and main foodstuff corporation in an effort to establish social reforms.
The revolution seeks to institutionalize policies favoring the implementation of popular democracy, economic independence and equitable distribution of revenues in Venezuela.
