Banda need to be a smaller sized group. It has actually the definition of a gang or a absent band. A banda doesn"t have plenty of individuals.
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The bando has a wider meaning, prefer a faction in a battle (e.g. El bando aliado in world War II).
Banda means a tiny group of world with common tasks (mussical tape or gangster band).
Bando method a part in a dispute that is choosen (voluntarily or not) and also is translated in english together "faction". Using "Banda" as faction is monster at least in Spanier aramuseum.org.
PD: im aramuseum.org
Warning! Banda in aramuseum.org also method both political parties of an stadium or delimited space. Also, it may mean a rubber band, prefer in english.
Both have related meanings linked to a group of people.
When you space talking about a music tape a gang you use banda:
Tengo una banda de rock.
I have a absent band.
Una banda de ladrones.
A thef gang.
Soundtrack, related to music band.
In México you"ll see:
Banda de viento.
Is a music tape of northern Mexican music with air instruments.
When the topic is bando the definition goes to the faction an interpretation is easier since it has actually less meanings:
La opinión pública se dividió en dos bandos.
The publicly opinion was separated into 2 groups.
Both words have actually other definition but they are etymologically apart.
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The use of these two words is basically the same in the whole aramuseum.org speaking world yet I found that bando in Spain way also one edict, to publish a law or something main said by the government.
In Mexico once you say:
¿Te gusta la banda?
Do you like banda?
You"re asking to a person if likes the music that banda —La música de banda—. This is a mexican music genre very popular amongst the north states and also now an extremely spread all over the country.