The Banker's algorithm is a deadlock avoidance algorithm that checks if a system is in a safe state when resources are requested. It models the allocation of resources to processes as a bank lending money to customers. The algorithm uses data structures like Available, Max, Allocation, and Need to represent the available resources, maximum requested resources, allocated resources, and remaining needed resources for each process. It iterates through processes to see if their remaining needs can be met by available resources while maintaining a safe state.
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