ABSTRACT
This chapter examines general implications of bank failures for payment intermediation and provides some recommendations for authorities regarding bank resolution strategies. Bank failures may have great influence on the situation of their counterparties and may cause systemic risk in the whole financial system. The chapter presents the consequences of bank failures arising especially from banks' role in payment intermediation and the assessment of the solutions which may be used to protect payment functions of a failed bank under the resolution mechanism. It deals with explanation of the phenomenon of financialization and its implications for some roles of banks in the economy. The concept of financialization appears in discussions and debates around the nature and dynamics of contemporary capitalism. Financialization transforms the functioning of the economic system. The phenomenon of financialization in the world economy is reflected by different economic data.
