Explain the Banker's algorithm for deadlock avoidance.

The Banker's algorithm is a resource allocation and deadlock avoidance technique used in operating systems. It works by keeping track of the available resources and the maximum resources that each process may request. The algorithm then simulates resource allocation to avoid deadlock by only granting resource requests that can be satisfied without leading to a circular wait condition. By ensuring that the system remains in a safe state (i.e., no deadlock can occur), the Banker's algorithm helps in efficient resource utilization and preventing situations where processes hold resources indefinitely, leading to system deadlock.