As the number of start-up banks continues to swell, the Federal Deposit Insurance Corp. is starting to worry about how an economic downturn would affect them.

The proliferation of unseasoned institutions could spell trouble, the FDIC's Atlanta and San Francisco regions said in the agency's quarterly Regional Outlook. During the recession of the early 1990s, the Atlanta region pointed out, banks that had not weathered one before were twice as likely as established banks to fail or have poor examination ratings.

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