This paper examines the role of repo lending between counterparties affiliated with the same bank holding company (BHC). Using confidential transaction-level data, we find that Treasury repo rates between affiliated entities are significantly higher than those between unaffiliated parties. This affiliation premium is more pronounced when dealers face tighter balance sheet constraints, suggesting that regulatory capital requirements raise the cost of external borrowing and enhance the value of internal funding. During a temporary period of regulatory relief when leverage requirements were relaxed, the affiliation premium nearly disappeared, only to re-emerge once the regulations were reinstated. Our findings underscore a unique competitive advantage for dealers within large BHCs: the ability to access internal liquidity from affiliated banks. This internal liquidity channel also facilitates the distribution of liquidity from banks with high level of reserves to the rest of financial system.