Australia to guarantee all bank deposits

(CNN) - Australian Prime Minister Kevin Rudd said Sunday that his government will guarantee all deposits in the country's banks and financial institutions for the next three years.

Rudd told reporters the guarantee was one of three steps the government is taking to safeguard Australians from the fallout of the global financial crisis.

The government will also guarantee all term wholesale funding by Australian banks operating in international markets.

In addition, it will inject 4 billion dollars (U.S. $2.6 billion) into residential-backed securities to help shore up the Australian mortgage market.

The moves were intended to reassure Australians that the government would safeguard them from the fallout of the global financial crisis.