Chvalovsky was detained at the Prague airport as the Czech national team was leaving for a friendly match against Macedonia, CTK said.
It said Chvalovsky was accused of funneling bank credits into activities other than they were granted for, and then defaulting on repayments.
Chvalovsky has previously admitted having problems with debt payments but has denied any criminal activity.
Komercni Banka , creditor of a group of firms associated with Chvalovsky, said on Tuesday the group had owed it as much as 2.4 billion crowns at one point, some of which has been repaid.
Komercni spokeswoman Marie Ruzickova declined to say how much Chvalovsky'a firms owed the bank at this point. She said Komercni has been in close contact with investigators.
CTK said police are asking the court to hold Chvalovsky in custody pending further investigation.
Reuters
Czech police have arrested the country's top soccer boss Frantisek Chvalovsky and charged him with credit fraud, the CTK news agency reported. Police suspect Chvalovsky, who heads the Czech-Moravian Football Association, of a 640 million crown ($17 million) fraud connected with debts of a company he leads, the agency said. Police were not available for comment.
