What special problem do$$ off$-$balance$-$sheet activities present to bank$$ regulators?

A$.$

Since data for$$ off$-$balance$-$sheet activities are not always$$ available, asymmetric information problems may arise.

B$.$

These activities do not appear on bank balance sheets and thus limit a$$ bank's ability to pursue$$ high$-$risk investments.

C$.$

These activities do not appear on bank balance sheets and thus cannot be handled with bank capital requirements.

D$.$

All of the above are possible problems that bank regulators may encounter.