Lower Contrast Ratio = Color Banding?

[diamondfoxxx]

I have a Sony Bravia 32 inch LCD display (U-Series), and it has some severe color banding. I was thinking maybe it was the low contrast ratio that's causing this? (it's 1500:1).
The banding very noticeable during 'misty' scenes--like in Batman Begins Blu-ray, for example, the scene where the the hallucination gas is released and the folks start to see Batman in a warped manner and start attacking him--in my display there's banding in the mist.
Is it because of the low contrast ratio?

I'm connected through an HDMI from my ps3 to LCD.