The vessel was built at the South Dock, Sunderland yard of Bartram and Sons Limited. She was launched on 29 June 1942 and completed during September of the same year, having been built for the Ministry of War Transport, she was operated under the management of W. T. Gould & Company Limited of Cardiff.

At the outbreak of war in 1939 the yard closed due to lack of orders but was reopened for the war effort. The company received orders for the construction of 24 ships, nine of which were to the new Government Standard, five to the Empire Standard 'B' design and four vessels to the type 'C' design.

The 'Empire Banner' was employed in convoys during the Second World War and it was during one of these convoys that, on 7th February 1943, she was torpedoed off the coast of Algeria by U-77 and sunk later the same day by enemy aircraft. Her master was Jeffrey J. Bedford.

Convoy KMS 8G departed the Clyde on 21 January 1943. Empire Banner was carrying 3,800 tons of military supplies, including tanks and other transport. She had departed from Penarth and was destined for Bône. The master, 46 crew members, 15 gunners and ten passengers (Army personnel) were picked up by HMCS Camrose (K 154) and landed at Algiers. [859]