Leveraging unique data on internal capital flows between Bank Holding Companies (BHCs) and their subsidiaries, we investigate the role of internal loans to commercial banks over the past three decades. These loans serve as asset-like liabilities, providing banks with a stable, low-cost funding alternative to traditional demand deposits. Banks with access to internal loans engage more aggressively in the syndicated loan market, issuing loans with larger amounts, longer maturities, and lower interest rates. Additionally, they are more likely to establish relationships with new borrowers. Despite instances of underperformance, the aggregate impact of loan-funded loans on bank performance is positive. We further characterize how bank and nonbank subsidiaries compete for internal loans from their BHC. We show that nonbanks have received increasingly preferential treatment over time. Our findings suggest that the expansion of nonbanks inside BHCs can negatively affect credit access in the broader economy.