CREDIT Suisse Hong Kong branch will for the first time launch a $2 billion revolving certificate of deposit (CD) programme in a bid to secure long-term local currency funding. The 15-year programme, arranged by Wardley, underlines the pressure on banks, both local and foreign, to procure stable funding to support long-term assets, in anticipation of the start of airport projects. ''Issuing CDs will help easing the mounting pressure on the high loan-to-deposit ratio faced by most banks in Hong Kong,'' said Andrew Fung Hau-chung, manager of swaps and trading in Wardley. Unlike ordinary CD issues, a revolving programme gives flexibility to the issuer because all the documentation is completed by the time the programme is set up, similar to a medium-term programme by a corporate issuer. In this case, Credit Suisse can issue any fixed or floating rate CDs with maturities between two to 10 years at short notice. Apart from Credit Suisse and Wardley, which will automatically become the dealers of the issue, two more houses will be invited to act as dealers. ''This arrangement of involving more than one house in the issue will surely help enhancing the liquidity in the secondary market,'' Mr Fung said. Under the existing practice only the issue's arranger is the dealer, greatly handicapping trading in the secondary market and fuelling complaints of illiquidity. In November, United Merchants Finance, a local instalment finance company jointly owned by General Electric Capital and Jardine Matheson, established a $1 billion CD programme, which was arranged by Schroders Asia. Acting as dealers are Jardine Fleming Bank, Lehman Brothers Securities Asia, Oakreed Financial Services, Societe Generale Asia, Union Bank of Switzerland and Wardley.