The Banker’s algorithm is used -

- Banker's Algorithm Is used majorly in the banking system to avoid deadlock.
It helps you to identify whether a loan will be given or not.

- This algorithm is used to test for safely simulating the allocation for determining the maximum amount available for all resources.
It also checks for all the possible activities before determining whether allocation should be continued or not.

- The banker’s algorithm is a resource allocation and deadlock avoidance algorithm that tests for safety by simulating the allocation for predetermined maximum possible amounts of all resources, then makes an “s-state” check to test for possible activities, before deciding whether allocation should be allowed to continue.

Source: Geeks for Geeks & guru99.