I trust only that banks are either government owned or if the deposits are insured by the govt .
Either be it government bank or private sector, I don't think there is any fear as nowadays banks can't run awatly with your money. All the money is being handled by a central body. I personally don't fear banks but I do fear its policies which does varies.
which I know the bank, private or government owned is already supervised by the government, in the transaction activity. so if the bank makes the fraud it is quite difficult, because it has been supervised. therefore we believe or not to the bank is up to us.
I dont really know what have happened between you and your bank but I dont think that the bank has no reason given to you for closing your account without prior notice from you especially when it has a large amount of deposit. We all know that when we open an accout we are signing on some terms and conditions which we should consider in opening the account and there must be a condition indicated in it which is the reason of your account closure. You must seek for a good lawyer if you really believe that you are on the right side.