 He studied economics at the Colegio de San Juan de Letran in Manila, and then went on to the Ateneo Graduate School of Business and the University of the Philippines College of Public Administration.In the aftermath of the February 1986 People Power Revolution which ousted President Ferdinand Marcos, incoming president Cory Aquino appointed Banayo as Postmaster General, succeeding Roilo Golez who had resigned to run for the Senate in the 1987 elections.As Postmaster General, Banayo instituted reforms aimed at reducing employee pilferage, in particular installing one-way mirrors at the Manila International Airport Airmail Distribution Center.