I have experienced this situation where a lot of banks got liquidated in 1998 in Indonesia. Yeah, it was a mess, but from a business perspective, it's the way of removing unprofitable banks. The problem with this issue in the present day however, the Government of Indonesia now will "bailout" the users' saving account up to 2 billion IDR (about 142K USD) per person.
If that happens, guess how the government will pay? By printing more money from thin air, or in other words, debasing the currency.
Lately or like 7 years ago, some countries started the merger system. Here, the weak bank is joined with the bigger bank and operation continues. I think this is better than pushing money to banks inform of bailouts. If monies are pushed that way without proper monitoring and checkmating by regulating agencies, it will lead to too much money in circulation which can lead to inflation.
So, it is the responsibility of the government to monitor banks to see weaker ones to be merged or bought over. That should be the first step instead of printing more money into circulation.