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The Banker’s algorithm is a resource allocation & deadlock avoidance algorithm developed by Edsger Dijkstra that tests for safety by simulating the allocation of pre-determined maximum possible amounts of all resources, and then makes a “safe-state” check to test for possible deadlock conditions for all other pending activities, before deciding whether allocation should be allowed to continue. For Example - http://mehadicuet.wordpress.com/2011/03/22/banker-safety-algorithm/