Banca owes its origin to the revival in the 18th century of the copper mines which had operated in ancient times. Banca was known as Le Fonderie (The Foundry) until the 19th century" and, under the Ancien Régime, it was a hamlet or district under the parish of Saint-Étienne-de-Baïgorry. It was not made a commune until 1793 under the same name, then in 1874 it was renamed "Banca". The remains of a large forge, a steel foundry started in 1828 on the site of the former copper smelter, stands at the entrance of the village on the banks of the Nive des Aldudes. The most visible element is a blast furnace in good condition.

The first armed action by Iparretarrak took place in Banca on 11 December 1973.