Actually, it is being embraced by banks... to a degree. Many glopbal banks are exploring Blockchain technology as a way to increase efficienies in money transfers with increased security.
That said, these are largely proprietary blockchains not based on the bitcoin blockchain. Bitcoin itself is not smiled upon by the banking world to a large degreee because it challenges their monopoly as the holders of value in the world. Bitcoin is a threat to that hedgemony.