This study analyzes how the off-balance sheet activities of the locally-owned commercial banks affect the banks' performance in terms of banks' exposure to various types of risks, bank's profit, and the banks' leverage. A panel data econometric regression has been done to achieve the objective. The results indicate that the relationship between the off-balance sheet activities and interest rate risk, unsystematic risk, and overall risk of the banks is insignificant. Nevertheless, the results indicate that market risk is significantly influenced by the off-balance sheet activities. In terms of banks' performance, it is found that the stock return is negatively related to off-balance sheet activities. Moreover, there is no significant relationship between off-balance sheet activities and return on equity, leverage, and liquidity ratio.