And the former Town star has big plans for the Northern Counties East League club.
Officials at the Welfare Ground moved quickly to land the 47-year-old after Nicky Bramald stepped down.
It means Banks, a Town player from 1986-88, will have managed both the original Emley (now Wakefield and playing in the UniBond League) and the current village club, who are in the NCE First Division.
First priority for Banks, who also played for Barnsley, Leicester, Bradford, West Brom, Rotherham and Darlington, will be winning promotion to the NCE Premier Division.
He has experience of non-league football, having played for the original Emley under his old Barnsley teammate Ronnie Glavin.
Banks, who was a key man in the team Glavin guided to the third round of the FA Cup in 1997-98, succeeded the Scotsman as manager in 2003.
He has also coached at Bradford and Chesterfield and currently works with Rotherham’s Under 16 side.
Banks, who is set to bring in his own assistant, said: “I think there is a big opportunity to take this club forward.
“Since the new club was formed three years ago they have forged their own identity and the potential to progress is definitely there.
“I watched the team lose 5-1 at Bottesford on Saturday and to be honest, Emley were the better side in the first half.
“Bottesford are third in the division and I will expect us to be up there this time next year.
“I’ll be looking to bring in a few new players but there is already some potential.
“With the great organisation off the field plus some success on it, I can see a bright future ahead.”
Jeremy Illingworth was the scorer for 11th-placed Emley away to Bottesford.
Emley finish their fixtures at Gedling Town on Saturday.
Wakefield, who have Glavin back at the helm, are eighth in the UniBond First Division North after Saturday’s 2-1 home win over Harrogate Railway.
The former Welfare Ground club, who left Emley to share Belle Vue with rugby league outfit Wakefield Trinity Wildcats in 2000, are now based at College Grove, the former ground of the now defunct Wakefield rugby union club.