Bankers should not assume that fee income and improved risk management will inoculate them from economic downturns, the Federal Deposit Insurance Corp. warned Monday.

Writing in its fourth-quarter regional economic outlooks, the agency said a cooling of the population boom in the West could reduce demand for new building. Banks, particularly small ones in Las Vegas, Phoenix, and other large western cities, have a heavy concentration of construction and commercial real estate loans, it noted.

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