The Venezuelan government has assumed control of Spanish-owned Banco de Venezuela, its third largest bank, stiffening his control over the economy.

President Hugo Chavez's socialist government’s current move has made the state the largest player in the nation's banking system.

Now the government has control over more than one-fifth of bank deposits.

Speaking on the topic, Finance Minister Ali Rodriguez said that government’s current move would reinforce the public banking system by investing in agriculture, energy, housing and tourism.

It is worth mentioning here that President Hugo Chavez's govt. has already nationalized major players in the steel, electricity and other sectors, including four major oil projects.

Last month, the Venezuelan government made a deal with the bank by approving to pay Spain's Grupo Santander $1.05 billion.

Banco de Venezuela, which employs 6,000 people, possesses 10 percent of country’s deposits and had 3.2 million clients.