Banks and their branches abroad are processing the majority of remittances sent by Filipinos living abroad. The participation and expansion o f banks during the past decade explain the dramatic increase in remittances during the 1990s (Battistella, 1999). Migration flows during this period was relatively stable, and thus cannot alone explain such an increase (Reinaruth, 2002). In addition to bank branches in the United States and Asia, non-bank financial institutions also play a significant role in transferring funds to the Philippines. These money transfer organizations are niche players and focus primarily on sending remittances only. .
