It is located south of Prince Rupert, on Hecate Strait, east of and opposite Haida Gwaii.

[3] Banks was instrumental in encouraging British fur trading voyages to the Pacific Northwest, such as Duncan's.

In late August, 1787, the British fur traders James Colnett and Charles Duncan arrived at Banks Island.

They anchored their two ships, Prince of Wales and Princess Royal at the south end of Banks Island in Calamity Bay (which they named Port Ball).

The incompletely explored inlets on the maps prompted the Viceroy of New Spain to order an exploratory expedition, which was given to Caamaño.