Banking is different in that the banks swap in and out. The 8086 segments were all available at the same time once you loaded the segment register, and they overlapped.

Banking was one solution to the 1MB limit; was it extended or expanded mode? I can no longer remember, but one of those gave you a 64kb window somewhere above the 640kb limit in the address space not used by either video RAM or BIOS. That window could then be paged around the rest of memory.