LONDON (AP) — The Bank of England has warned that material risks remain in regard to Britain's departure from the European Union.

The bank's biannual Financial Stability Report says Wednesday that while progress has been made toward mitigating the disruption associated with Brexit, actions are needed both by the U.K. and EU to protect cross-border financial contracts.

Without a U.K-EU deal on financial services, a firm could find itself unable to keep servicing a contract for a client on the other side of the Brexit divide.

The bank says 29 trillion pounds ($38 trillion) of complex financial contracts called derivatives are at risk from next March.

The bank says "as yet the EU has not indicated a solution analogous to a temporary permissions regime."