Thank you Mr. Chairman. Today, we will examine remittances, an issue raised during the Committee's initial hearings on financial literacy.

Immigrants nationwide often send a portion of their hard earned wages to relatives and their communities abroad. In many cases, the total cost of remittances can be ten to twenty percent of the value of the transaction. People who send remittances are often unaware that the fees and exchange rates used in the transaction reduce the amount to the recipient.

The State of Hawaii is home to significant numbers of recent immigrants from many nations, including the Philippines. The Philippines is one of the largest destinations for remittances from the United States. The gross value of remittances to the Philippines is $3.7 billion and a large portion of that amount comes from people in Hawaii.

The examination of the issue of remittances is extremely timely as immigrants have less money to send to their families during the current economic recession. Consumers cannot afford to be uneducated regarding financial service options and fees placed on their transactions.

Remittances can be used to improve the standard of living of recipients by increasing access to health care and education. Funds are also collected by voluntary hometown associations and used for community development projects, as we will learn more about during this hearing.

Many immigrants are unbanked and lack a relationship with a mainstream financial services provider. The unbanked are more likely to use check cashing services which charge an average fee of over nine percent. They are also more likely to utilize the services provided by pay-day and predatory lenders. The unbanked miss the opportunities for saving and borrowing at mainstream financial institutions. If unbanked immigrants use the remittance services offered by banks and credit unions, they may be more likely to open up an account.

I thank the witnesses for appearing today and look forward to hearing your recommendations. Again, Mr. Chairman, thank you for conducting this hearing.