Chavez urged the National Assembly, which is controlled by his allies, to approve a measure requiring private banks to provide financing for housing construction.

Banks are currently required by law in Venezuela to provide nearly 10 percent of their lending programs to finance home purchases and construction projects.

The National Assembly on Thursday gave initial approval to a bill that describes banking as a "public service" and gives the government the authority to declare banks to be of "public utility." The bill is expected to be up for final approval after a second debate in the coming days.

In the past year, the government has seized control of about a dozen banks, citing financial problems and violations of banking rules.Chavez's government currently controls about 28 percent of Venezuela's banking sector.