Banks Island was named in 1788 by Charles Duncan, captain of the fur trading vessel Princess Royal, in honor of Sir Joseph Banks, who was then president of the Royal Society and had accompanied James Cook during the exploratory voyages of 1768–1771.
Illa Banks foi bautizada en 1788 por Charles Duncan, capitán do buque mercante de peles Princess Royal, na honra de Sir Joseph Banks, que entón era presidente da Royal Society e acompañara a James Cook durante as viaxes exploratorias de 1768-1771.