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Facts: The 16th regular examination of the books and records of PAL Employees Savings and
Loan Association (PESALA) was conducted by a team of CB Examiners. Several irregularities
were found to have been committed by the PESALA officers. Hence, CB sent a letter to
petitioners for them to be present at a meeting specifically for the purpose of investigating said
anomalies. Petitioners did not respond. Hence, the Monetary Board adopted a resolution
including the names of the officers of PESALA in the watchlist to prevent them from holding
responsible positions in any institution under CB supervision.
Petitioners filed a petition for injunction against the MB in order to prevent their names from
being added in the said watchlist. RTC issued the TRO. The MB appealed to the CA which
reversed RTC. Hence, this petition for certiorari with the SC.
Petitioners contend that the MB resolution was null and void for being violative of their right to
due process by imposing administrative sanctions where the MB is not vested with authority to
disqualify persons from occupying positions in institutions under the supervision of CB.

Issue: Whether or not the MB resolution was null and void.

Held: NO. The CB, through the MB, is the government agency charged with the responsibility
of administering the monetary, banking and credit system of the country and is granted the power
of supervision and examination over banks and non-bank financial institutions performing quasi-
banking functions of which savings and loan associations, such as PESALA, form part of.

The special law governing savings and loan associations is R.A. 3779, the Savings and Loan
Association Act. Said law authorizes the MB to conduct regular yearly examinations of the
books and records of savings and loan associations, to suspend a savings and loan association for
violation of law, to decide any controversy over the obligations and duties of directors and
officers, and to take remedial measures. Hence, the CB, through the MB, is empowered to
conduct investigations and examine the records of savings and loan associations. If any
irregularity is discovered in the process, the MB may impose appropriate sanctions, such as
suspending the offender from holding office or from being employed with the CB, or placing the
names of the offenders in a watchlist.