THREE veteran bank officials in Suzhou, east China's Jiangsu Province, have reportedly been arrested over suspected corruption and for extending irregular loans.

The officials, including the president of a China Merchants Bank branch in Wujiang District of the city, were arrested in May in a corruption probe related to a local micro-credit firm, the financial news website 21cbh.com reported yesterday, citing sources.

The bankers are suspected of accepting bribes and raising funds by taking advantage of their positions for the petty-loan firm, which engaged in private lending to real-estate companies at exorbitant interest rates, according to the report.

The illegal fundraising was exposed after borrowers failed to repay the loans, the report said, citing a source from the local procuratorate.