We study whether a bank’s internal capital market allocates capital efficiently across branches. Using a large-scale randomized pricing experiment on approximately 50,000 loan applications, we identify the marginal return on capital for each branch group—the change in profit per dollar of capital allocated. We find that total lending is close to its optimal scale, but marginal returns are not equalized across branch groups, implying potential reallocation gains of 8.4% of profits. The bank’s uniform pricing policy—charging the same spread across all branches conditional on credit score—impedes price-based reallocation.