I decided to make a Samurai-type Cryptogee banner, in this tutorial you can follow along as I create the effect.
The bits at the end I don't show to get the finished image are:
Smudge tool to finish off the 'loop' look around the pole.
Rounded rectangle tool to create new handle, using 2 shapes. Free transform to get the right size.
Free distort to get the bent look on the poles.
Background using gradient tool.