A recent situation in my country where the banks have been instructed to block accounts related/associated with crypto trading has prompted me to start thinking if these banks are actually happy carrying out government policies against their customers, because some of them seem not too happy about it but look to have little or no choice on the matter.
Can the banks challenge the policies from the government? Are the banks working for the people or the government? is there any possibility that banks can operate freely entirely from government policies?
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Read news article here)
Generally, governments should not interfere with banks. The central bank is responsible for the exchange rate of the national currency and the financial policy of the state, and only it is authorized to give the banks instructions and instructions that are binding on them.
It hardly makes any practical sense for bank employees to challenge any instructions from the central bank. Direct appeal to the central bank does not lead to anything, and appeal to the court is expensive, and even after that, you can lose your job.
but even so they remain above the bank and the regulations in the bank are under the control of the government.
maybe they literally can't do something that makes them interfere, but on the other hand they have a closeness that can make banks submit to them without them having to regulate it to the extreme.
This is a reciprocity where when the bank is submissive then the government can guarantee them and on the government side when they can guarantee all forms of regulation in the bank they will get more profits there