Competition would work as a solution to this particular problem and overall.

> And we're not talking about central banks, but normal banks. The competition is still there.

Banks have notoriously high switching costs and barriers to entry. What competition would look like is a regulatory environment that enabled switching banks to be as easy as switching wireless providers after number portability.

> Tell me, why shops are not allowed to discriminate on the basis of race? Why not just have competition deal with that?

Originally, because white customers would refuse to patronize shops that served black customers, effectively acting as a monopsony (lack of competition) and the law was needed to restore competition.

Today, mostly for historical reasons. Do you honestly think that a black person right now would have trouble finding a restaurant to eat in even if there was no law forcing all restaurants to serve them?