Venezuela Merges Four Banks Into Public Institution

Four private banks here will join together into one new government-run bank, according to Venezuela’s president.

 CARACAS, Venezuela — Four private banks here will join together into one new government-run bank, according to Venezuela’s president.

This public bank called “Banco Bicentenario” formed as a reaction to accuations of the previous banks’ accounting irregularies.

The four banks — Confederado, Central, Bolivar, and Banco Real — were seized by the Venezuelan government.

Other financial institutions — Banco Canarias and BanPro — were also closed.

About 70 percent of the Venezuelan banking sector is under private ownership.

In May, the government nationalized the third-largest bank, Banco de Venezuela.

President Hugo Chavez announced the restructuring on his television and radio programs last week.

Chavez threatened to take over more private banks on grounds of rampant “financial speculation.