Preheat the oven to 350°F. Grease three 8-inch round cake pans. In a mixing bowl, cream butter and sugar until light and fluffy. Add eggs one at a time, then mashed bananas and vanilla. In another bowl, whisk dry ingredients and add gradually to wet mixture. Divide batter evenly into pans and bake for 24-26 minutes. Cool completely.
Prepare the frosting: Beat butter and shortening until smooth. Add powdered sugar gradually, then vanilla and caramel sauce. Mix until smooth and adjust consistency with water if needed.
Assemble the cake: Level the cake layers. Spread caramel sauce on first layer, add frosting, repeat with second layer, then frost the whole cake. Decorate with banana chips and drizzle caramel sauce around the edges.
Notes
This banana caramel cake is perfect for special occasions, combining moist banana layers with rich caramel frosting and toppings.