WASHINGTON, Dec 3 (Reuters) - Risks to U.S. financial stability remain elevated as the coronavirus pandemic continues, a U.S. regulatory panel said on Thursday, warning that a potential wave of bankruptcies and a collapse in the commercial real estate market could weigh heavily on smaller banks. The annual report from the Financial Stability Oversight Council urged regulators to remain vigilant for weaknesses across financial markets, pointing to March turmoil in short-term funding markets as an example of where problems can flare up. (Reporting by Pete Schroeder; Editing by Leslie Adler)