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October 12, 2008 - 3:31PM
Prime Minister Kevin Rudd today announced the government would guarantee all deposits being held in Australian financial institutions for the next three years.
The blanket guarantee was one part of a three-pronged plan to further safeguard Australians from the fallout from the global financial crisis.
The government will also guarantee all term wholesale funding by Australian banks operating in international markets.
Mr Rudd said this would enable Australian banks to better compete against their global rivals, many of whom were getting guarantees from their governments.
The government will also put another $4 billion into residential-backed securities to help shore up the Australian mortgage market.
