They definitely do plan to create something against bitcoin, otherwise they would use the already existing and working model that bitcoin represents.
After realizing that we are becoming a threat to them, they will try with rival crypto based operation, but they missed the whole point of it - decentralization, which i doubt they will implement in their model.
their model would be 'distributed'.. that way no single employee can tamper with the ledger, as the ledger sync's with thousands of nodes (one per bank branch)
but it would be internal distribution within the banking network.. not the open public.
but the purpose is not to rivel bitcoin. not to compete, not to win customers or make bitcoin obselete. its just to reduce internal errors, frauds or other issues.