Recent Japanese banks face two issues: they are reluctant to lend money to new promising projects (credit crunch) while providing excessive loans to underperforming firms. This contradictory behavior stems from a violation of the absolute priority rule among stakeholders. When this rule is broken, banks prefer to fund inefficient projects themselves to protect their senior credit value, leading to excessive loans. Additionally, banks anticipate losses from this violation, causing them to avoid lending to initially efficient projects, resulting in a credit crunch.