Banquo is a general in the King's army (same as Macbeth) and is often seen in contrast to Macbeth. Banquo is the only one with Macbeth when he hears the first prophecy of the weird sisters; during the same prophecy, Banquo is told that his children will be kings, though he will not be. How Macbeth plays his part of the prophecy to be fulfilled makes the play – how Banquo does not creates a nice contrast to our main character.
From the very first time we meet Banquo, he sets himself apart from Macbeth, especially notable because both characters are introduced into the play at the same time: their meeting with the witches. While Macbeth is eager to jump all over the weird sisters' words, Banquo displays a caution and wisdom contrary to Macbeth's puppy-dog excitement. He notes that evil tends to beget evil. Though, we might want to keep in mind that in Banquo's last private speech, when he knows Macbeth has done wrong, he still thinks of what good might be coming to him as a result of the prophecy.
It's also important to note that King James I of England (a.k.a. King James VI of Scotland), the guy who was monarch when Shakespeare wrote Macbeth, traced his lineage back to Banquo so it's important that Shakespeare portrays Banquo as a noble figure. (In Shakespeare's source for the play, Holinshed's Chronicles, Banquo helps Macbeth kill the king.) We talk about this more in "Power" so be sure to check out "Quotes."