Germany says it will guarantee all private German bank accounts in an effort to prevent bank runs as fears of a worldwide financial crisis spread.

Chancellor Angela Merkel took the action Sunday, a day after she criticized Ireland for doing much the same thing.

Greece and Iceland have taken steps to rescue their banks.

Berlin’s action abolishes the old guarantee of up to 90% of all bank deposits, but only up to 20,000 euros per account, or about $27,000.

Under legislation signed into law last week by President Bush, bank customers will receive $250,000 in Federal Deposit Insurance Corp. protection per depositor through Dec. 31, 2009. The new limit makes it easier for people to keep their money at a single bank. The old limit of $100,000 on deposit insurance was established in 1980.

The Certificate of Deposit Account Registry Services provides up to $50 million in FDIC coverage through multiple CDs handled at one bank. Funds are split into amounts below the FDIC limit and divided among member banks to ensure full coverage.