This paper analyzes so-called "Ever-Green Lending". We try to analyze the very limited situation of firms compared with other research dealing with ever-green lending. We focus on the Main Bank's lending behavior to obviously economically distressed firms which were abandoned by banks other than the Main-Bank. Our result shows that the Main-Bank extends loan to distressed clients if the main-bank loan size to the firm is large. However, Keiretsu relationships, which are popular among earlier researchers on the Japanese Main Bank, are not relevant. Furthermore, a stable main-bank relationship does not bring the ever-green loan to the firm, rather, competition among banks for the main-bank status in the past does.
