Australia Guarantees all bank deposits and shores up non bank mortgage lending

Australia's Prime Minister Kevin Rudd has announced three measures to help to build confidence in the Australian Finance market.
Firstly he says that the Government will guarantee all deposits, regardless of ammount, in all Australian banks, building societies, credit unions and in the Australian subsidiaries of foreign banks. This move will prevent any run on bank funds from nervous deposit holders.
It will also stand behind the money that Australian banks borrow from foreign institutions. This should help build confidsence in other banks dealing with Australian banks, a major concern in the US and Europe right now.
Thirdly, he annouced that the Government would add another $4 billion into the secondary mortgage market to ensure the non bank market can compete effectively with banks for new mortgage loans.
Mr Rudd said,"Australia is better placed than almost any other country in the world to deal with this crisis.
"We have the best bank regulators in the world our banks balance sheets are strong and healthy."
Opposition Leader Malcolm Turnbull has welcomed the Government's move to guarantee deposits and the banks' overseas borrowings.
Australia's mortgage industry is well placed to move forward.