The government has pledged to reform the banking sector, which experts say is laden with bad debt, poorly regulated and at possible risk of collapse.
A police officer said tycoon Nguyen Duc Kien was arrested for "wrong doings in economic activities" yesterday afternoon.
The officer said he was not authorised to give his name to the media.
Kien founded Asia-Commercial Bank, Vietnam's biggest private bank, but withdrew from its board in 2010.
The 48-year-old is a major shareholder in other banks, the chairman of Hanoi football club and one of Vietnam's richest men.
Hanoi: Vietnamese police have arrested one of the country's wealthiest banking tycoons for undisclosed financial crimes.
First Published: Tuesday, August 21, 2012, 12:27