The 23-year-old had to temporarily leave the Scotland squad to complete his move from Aston Villa to Palace on Monday as the English transfer window closed with a flurry of activity.
The switch meant a resurrection of a relationship forged with Holloway during a loan spell with Blackpool four seasons ago, a 24-game stint which led to Bannan subsequently making his first-team breakthrough at Villa.
However, the Glasgow-born midfielder, who made 30 appearances for Villa last season, had failed to feature at all for Paul Lambert's team this term and is now seeking a fresh start in London. He said: "I was at Blackpool with the gaffer here when they got promotion that year and that was probably the highlight of my career so far.
"It is a big move for me to leave Villa but it's a new chapter in my life now and I can't wait to get started.
"I want to get myself in the door and start training and hopefully get myself in the team. I haven't played this season and didn't much last year so I can't wait to get going."
Crystal Palace have further strengthened their squad with the signing of midfielder Adlene Guedioura from Nottingham Forest concluding a flurry of activity in the transfer market by the Eagles.
The three-year deal for the Algeria international was announced more than 12 hours after the transfer window had closed but, because part of it was in place before the 11pm deadline on Monday night had elapsed, the move was sanctioned.
Guedioura, 27, had spent a year-and-a-half at the City Ground after initially moving across the Midlands on-loan from Wolves.
Palace also signed Jack Hunt from Huddersfield and Adrian Mariappa from Reading, with Cameron Jerome joining on-loan from Stoke.