The Banker's algorithm, sometimes referred to as the avoidance algorithm, is a resource allocation and deadlock avoidance algorithm developed by Edsger Dijkstra that tests for safety by simulating the allocation of predetermined maximum possible amounts of all resources, and then makes an "s-state" check to test for possible deadlock conditions for all other pending activities, before deciding whether allocation should be allowed to continue.
The algorithm was developed in the design process for the THE operating system and originally described (in Dutch) in EWD108. When a new process enters a system, it must declare the maximum number of instances of each resource type that it may ever claim; clearly, that number may not exceed the total number of resources in the system. Also, when a process gets all its requested resources it must return them in a finite amount of time.
Limitations
Like the other algorithms, the Banker's algorithm has some limitations when implemented. Specifically, it needs to know how much of each resource a process could possibly request. In most systems, this information is unavailable, making it impossible to implement the Banker's algorithm. Also, it is unrealistic to assume that the number of processes is static since in most systems the number of processes varies dynamically. Moreover, the requirement that a process will eventually release all its resources (when the process terminates) is sufficient for the correctness of the algorithm, however it is not sufficient for a practical system. Waiting for hours (or even days) for resources to be released is usually not acceptable.