Venezuelan President Hugo Chavez warned he will nationalise the country's banks and largest steel producer in an apparent bid to strong-arm the businesses to contribute more to local industry.

Delivered in a wide-ranging speech in which he promised Venezuela was headed for a classless society, Chavez's threat Thursday did not seem to signal an imminent takeover.

"Private banks have to give priority to financing the industrial sectors of Venezuela at low cost," Chavez said. "If banks don't agree with this, it's better that they go, that they turn over the banks to me, that we nationalise them and get all the banks to work for the development of the country."