Answer:
"Just-in-time inventory", as applied to banking, refers to the concept of using another firm's product offerings that is promoted as its own. While private labeling has been around for years, the rise of the Internet has promoted the selling of capital-intensive products without having to take a position in such inventory. Your fellow banker most likely had a broker-dealer subsidiary that promoted another firm's position in securities. Through this structure, that bank could garner fee income off securities sales without risking a dime of capital or expending resources in position management.
Steven A. Wood , Chief Economist and Director of Content
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