I guess that would be a very long process. No bank will want to die because of bitcoin (which doesn't need any bank as you know). So i guess banks will just try to stop bitcoin from emerging further.
Yes, banks are facing a really very tough competition from bitcoin at a moment, and they are aware if bitcoin gets on mainstream that would be an end of banking system and that's the reason they are not supporting bitcoins.
Tough competition from bitcoin at the moment? What are you smoking?
There is potential for Bitcoin to be a rival to banks, but at this moment - there is nothing.