In the latest scandal to hit Vietnam’s financial sector, nine people have been arrested in connection to massive losses, caused by wrongfully granted loans.

Two ex-leaders and seven ex-bankers of the former Vietnamese bank, TrustBank, are accused of approving illegal loans that led to $US21 million in losses.

According to state-run Tuoi Tre newspaper, all nine were members of the bank’s credit board.

The bank changed its name to Vietnam Construction Bank in 2013.

But it later became engulfed in a corruption scandal that reportedly caused a record $US400 million in losses.

The nine former leaders face charges of “violating lending regulations” and “deliberate acts against state regulations.”

– with other agencies