diff --git a/src/localisation/string_ids.h b/src/localisation/string_ids.h
index e9da964f74..302e2c8ac2 100644
--- a/src/localisation/string_ids.h
+++ b/src/localisation/string_ids.h
@@ -1069,6 +1069,8 @@ enum {
 	STR_MUSIC_ACKNOWLEDGEMENTS_ELLIPSIS = 2862,
 	STR_MUSIC_ACKNOWLEDGEMENTS = 2863,
 
+	STR_TOO_MANY_BANNERS_IN_GAME = 2980,
+
 	STR_CHANGE_BANNER_TEXT_TIP = 2986,
 	STR_SET_AS_NO_ENTRY_BANNER_TIP = 2987,
 	STR_DEMOLISH_BANNER_TIP = 2988,
diff --git a/src/world/banner.c b/src/world/banner.c
index 172ab08f7d..306b1cad26 100644
--- a/src/world/banner.c
+++ b/src/world/banner.c
@@ -19,6 +19,8 @@
  *****************************************************************************/
 
 #include "../addresses.h"
+#include "../game.h"
+#include "../localisation/localisation.h"
 #include "banner.h"
 
 rct_banner *gBanners = (rct_banner*)0x0135A124;
@@ -32,3 +34,34 @@ void banner_init() {
         gBanners[i].type = BANNER_NULL;
     }
 }
+
+/* rct2: 0x006BA278
+ * Creates a new banner and returns the index of the banner
+ * If the flag GAME_COMMAND_FLAG_APPLY is NOT set then returns
+ * the first unused index but does NOT mark the banner as created.
+ * returns 0xFF on failure.
+ */
+int create_new_banner(uint8 flags){
+    int banner_index = 0;
+    for (; banner_index < MAX_BANNERS; banner_index++){
+        if (gBanners[banner_index].type == BANNER_NULL){
+            break;
+        }
+    }
+
+    if (banner_index == MAX_BANNERS){
+        RCT2_GLOBAL(RCT2_ADDRESS_GAME_COMMAND_ERROR_TEXT, rct_string_id) = STR_TOO_MANY_BANNERS_IN_GAME;
+        return BANNER_NULL;
+    }
+
+    if (flags & GAME_COMMAND_FLAG_APPLY){
+        rct_banner* banner = &gBanners[banner_index];
+
+        banner->flags = 0;
+        banner->type = 0;
+        banner->string_idx = 778;
+        banner->colour = 2;
+        banner->text_colour = 2;
+    }
+	return banner_index;
+}
\ No newline at end of file
diff --git a/src/world/banner.h b/src/world/banner.h
index 5e7843818a..c3ee3300f9 100644
--- a/src/world/banner.h
+++ b/src/world/banner.h
@@ -44,5 +44,6 @@ enum{
 extern rct_banner *gBanners;
 
 void banner_init();
+int create_new_banner(uint8 flags);
 
 #endif
diff --git a/src/world/map.c b/src/world/map.c
index db832b1768..a98612d2e6 100644
--- a/src/world/map.c
+++ b/src/world/map.c
@@ -1711,24 +1711,24 @@ void game_command_place_banner(int* eax, int* ebx, int* ecx, int* edx, int* esi,
 			(map_element->properties.banner.position & 0x3) != edge){
 				map_element++;
 				if((map_element - 1)->flags & MAP_ELEMENT_FLAG_LAST_TILE){
-					uint8 a = sub_6BA278(*ebx);
-					if(a == 0xFF){
+					int banner_index = create_new_banner(*ebx);
+					if(banner_index == BANNER_NULL){
 						*ebx = MONEY32_UNDEFINED;
 						return;
 					}
-					*edi = a;
+					*edi = banner_index;
 					if(*ebx & GAME_COMMAND_FLAG_APPLY){
 						rct_map_element* new_map_element = map_element_insert(x / 32, y / 32, (base_height + 1) * 2, 0);
-						gBanners[a].type = type;
-						gBanners[a].colour = colour;
-						gBanners[a].x = x / 32;
-						gBanners[a].y = y / 32;
+						gBanners[banner_index].type = type;
+						gBanners[banner_index].colour = colour;
+						gBanners[banner_index].x = x / 32;
+						gBanners[banner_index].y = y / 32;
 						new_map_element->type = MAP_ELEMENT_TYPE_BANNER;
 						new_map_element->clearance_height = new_map_element->base_height + 2;
 						new_map_element->properties.banner.position = edge;
 						new_map_element->properties.banner.flags = 0xFF;
 						new_map_element->properties.banner.unused = 0;
-						new_map_element->properties.banner.index = a;
+						new_map_element->properties.banner.index = banner_index;
 						if(*ebx & 0x40){
 							new_map_element->flags |= 0x10;
 						}