Spread coconut in 13-by-9-inch baking pan, breaking up any clumps as needed. Bake 10 minutes, or until edges of coconut begin to brown.

Spread popcorn over coconut and sprinkle with butter; toss. Sprinkle popcorn mixture with sugar, salt and nutmeg; toss.

Bake 5 minutes longer, remove from heat and toss with banana chips. Serve immediately or cool and store in airtight container.