The intensive development of Banovići began with construction of the Brčko-Banovići railway in 1946. There were only a few houses at Banovići settlement, but by 1961 there were already 4,611 inhabitants. The settlement acquired all features of a modern urban town environment.
The rapid expansion of Banovići was fueled by the construction of the Brčko-Banovići railway in 1946. The settlement transitioned from a small settlement with limited housing to a modern urban town by 1961, as a result of this development.