pt. 2 (Banks are next up, watch out!)

Boris Segura, senior Latin American analyst for RBS, said that given problems in some other banks, there could be more "cleaning up" of institutions like the four closed on Monday.

"What we might be seeing is a nationalization of the system little-by-little," he said.

"That could be his (Chavez's) long-term strategy for the banks. Let's not forget though that Venezuela's is a small bank sector. Most people with money keep it offshore."

A senior government source told Reuters that officials were monitoring the bank system closely, but that the big institutions were in "good shape."

In a lengthy speech on Sunday, Chavez said banks that refused to lend to the poor or failed to sufficiently aid Venezuela's development could be taken over. [ID:nN29403303]

"I'm telling the private bankers, 'he who slips up loses, I'll take over the bank, whatever its size.'," he said.

In his statement, minister Rodriguez gave no specifics of future action, but made clear authorities would be vigilant. "The national government will continue acting with the firmness required by this situation, safeguarding all Venezuelans' interests," he said.

Despite the government's reassurances, some people wept and others chanted "We're not leaving!" outside Banco Canarias' headquarters during Monday morning. Venezuelans are especially nervous about banking collapses since a crisis in the mid-1990s that wiped out half the nation's banks.