The Banker's Algorithm is a resource allocation and deadlock avoidance algorithm used in operating systems. It helps manage multiple processes by ensuring that resources are allocated safely, preventing situations where processes may be unable to proceed due to insufficient resources. The algorithm checks if granting a resource request will leave the system in a safe state, meaning all processes can complete their tasks without leading to deadlock. To determine a safe state, the Banker's Algorithm uses a concept called the safe sequence. It evaluates the maximum resource needs of each process and compares them with the currently available resources. If a process can finish with the available resources, it is temporarily allocated the resources, and the system checks again until all processes can be satisfied or a deadlock is detected.