What is one reason that soft budget constraint problem persist for Chinese banks?
A.
SOEs have failed to overturn old, inflexible budgeting practices and introduce flexible “soft” budgets
B.
It is difficult for outsiders to identify poorly performing loans
C.
Hardening budgets has forced SOEs to keep relying on the government during distress
D.
The problem does not persist. Soft budget practices were eliminated following China’s 13th Five Year Plan, which was implemented in 2015