By Jason Douglas

LONDON--The Bank of England said Wednesday that the outlook for financial stability in the U.K. remains challenging, with threats emanating from both home and abroad.

In a twice-yearly report, the BOE said the financial system has held up well since the U.K.'s June decision to exit the European Union, but Brexit still poses risks.

Officials flagged risks associated with the commercial real-estate market and the U.K.'s large current-account deficit, adding that the "orderliness" of the Brexit process will be an important factor in whether stability is preserved.

The BOE's Financial Policy Committee, which monitors risks to the health of the system, took no new policy actions but said it has asked staff to look at risks associated with derivatives and the insurance sector.

Write to Jason Douglas at jason.douglas@wsj.com

(END) Dow Jones Newswires

November 30, 2016 02:50 ET (07:50 GMT)

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