Government to remove bank guarantee

The Federal Government says its guarantee of wholesale funding for banks and other lenders is no longer needed.

The guarantee was put in place in October 2008 at the height of the global financial crisis to help financial institutions access funding from overseas, ensuring credit was still available in Australia.

The Government says it will be closed at the end of March.

The guarantee of deposits under $1 million, however, will remain in place until it is reviewed in October next year.

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