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The financial markets in SL have been one of the most drama filled and controversial. In 2005, Ginko Financial Bank was founded and quickly grew to become not only the first, but the largest virtual bank in SL. Many other banks soon followed, often offering interest rates to depositors that many real life economists thought extraordinary, but was seen by residents to reflect the high economic growth rates typical of the SL economy. Following the gambling ban of 2007, Ginko Bank collapsed in a bank run triggered by casino owners fleeing SL. Ginko's L$200 million in deposit liabilities equalled approximately US$ 750,000.00, constituting the largest business failure in SL history. Within months, other smaller banks suffered similar collapses as panicking depositors sought to recover what remaining funds they had as the end of the gambling market caused collapses in land prices, scripting, building, and many other industries. Finally in January of 2008, Linden Lab, tired of complaints of lawsuits from angry depositors, banned any inworld group from offering interest on cash deposits without a real world banking license. The fact that real world banks are not legally permitted to handle L$ remained a point of debate over the legitimacy of such a rule.

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