The Central Bank of Venezuela (BCV) said on Friday that the financial system "is sound and safe," following President Hugo Chávez's move to take over Banco de Venezuela, the local branch of Spain's Grupo Santander.

The BCV issued a press release reporting "that the financial system is sound and safe," adding that it was supplying "enough liquidity to the financial system, thus ensuring availability of the means of payment for the normal operation of the economy."

The bank also underlined that "it has enough reserves of coins and bills to keep the flow of cash in banks, thus providing the necessary means of payment for production, distribution and consumption activities within the country."