Abstract:

Concurrent banking transactions, a necessity in 

modern digital financial services, are highly 

vulnerable to deadlocks when multiple customers 

compete for shared fund pools. This contention 

leads to system freezes, data inconsistencies, and 

potential financial losses. This paper introduces the 

Banking Simulation System (BSS), a novel and 

scalable adaptation of Dijkstra’s Banker’s 

Algorithm designed to proactively ensure 

deadlock-free fund allocation in high-concurrency 

banking environments. 

The BSS models customer requests as concurrent 

processes and bank fund pools (e.g., checking, 

savings) as allocatable resources. A critical 

adaptation is the enforcement of credit discipline 

by capping a customer's maximum loan claim at 

60% of their verified income certificate. For each 

new transaction, the BSS uses standard resource 

matrices (Allocation, Max Need, Available) to 

check for safety in real time.A request is only 

approved if the new state is still safe, which means 

that all current transactions can finish without 

having to wait in a circle. 

The system, which is written in Python 3.12 and 

uses multi-threading and NumPy to speed up 

matrix operations, uses heuristic optimizations 

(earliest-finish-first scheduling) to make the safety 

check easier from an impossible O(n!) to a 

manageable O(n^2). We ran a lot of tests with up to 

100 customers at the same time and 2,000 fake 

requests, and there were no deadlocks in any of 

them. This is a big improvement over the 18% 

deadlock rate seen in a baseline First-In, First-Out 

(FIFO) system. The BSS achieved a high 

throughput of 22.1 transactions/second with an 

average approval latency of 45 ms. 

By bridging foundational operating system theory 

with financial concurrency, the BSS offers a 

proactive, low-overhead, and empirically validated 

framework for digital banking. Key contributions 

include (1) the first banking-specific Banker’s 

Algorithm with a verifiable, income-aware resource 

cap; (2) scalable safety verification via heuristic 

acceleration; and (3) comprehensive performance 

benchmarking. The BSS provides a robust 

foundation for next generation, high availability 

financial infrastructures.