Section 7
SEC. 7. The Philippine National Bank shall have supervisory and directory powers over all banks established under this Act. The supervision and direction herein provided for shall consist of the power to regulate the operation of the banks; particularly the amounts of loans that may be granted to farmers, the terms and conditions under which such loans are to be made, to prescribe the books of account and other records to be kept by the banks, to examine the banks' accounts and business, and to liquidate, in its discretion and without the necessity of instituting court proceedings, any bank violating any provision of this law or any lawful requirement established by the Philippine National Bank in accordance with the law, and any bank the business of which is deemed by the Philippine National Bank to be conducted in an unsafe manner.