Korea's banks are running out of dry powder to keep the stock bubble rising South Korea's five major commercial banks have exhausted over 85% of their annual household loan growth limits in the first half of the year due to persistent demand for home mortgages (which are being used to fund stock purchases) and direct stock market investments. Under strict regulatory caps designed to limit annual growth to 1.5%, the banks have collectively increased their household loan balances by 3.69 trillion won out of their combined 4.33 trillion won annual limit. With at least two banks already exceeding their yearly targets, financial markets anticipate a severe "lending cliff" in the second half of the year as banks are forced to restrict new loans and prioritize repayments https://tinyurl.com/yc524mtf(zerohedge)