Economies of the world encounter financial crises time and again and the main stream researchers are in search of some solution to insulate the economies from crises but no plausible solution has surfaced as yet. The crises majorly erupt through banking channels because of systemic problems in banking. The systemic fault of contemporary banking ignites crises which ultimately transform into financial and economic crises which may not be limited to any specific country or region.This dissertation is aimed to identify the systemic problem in the banking domain and to provide its solution. The study follows positivism as research philosophy and uses mathematical logic as methodology to map the contemporary banking model for uncovering the systemic problem. A formal system has been compiled for the study. The techniques of rewriting with equational reasoning and summations of terms of identified sequences have been used for formalization. The quality of autopoiesis (self-sustainability and self-reproduction of system) has been checked through logic whereas validity and sustainability of the model have been checked against objective criteria. The study shows that there is gap between conventional structure and operational behavior of contemporary banking model which emanates crises. This gap is the seed for crises which dictates the behaviors of banking system. The review of contemporary banking model has revealed that an ex-ante levy (a charge levied before production of goods and services) in the system is one of the main reasons of banking crises. It has also been found that there are certain actors of banking system which have conflicting dual roles. The banks (one actor) bind the firms (other actor) by way of contracts to collect a levy from households (yet another actor) in lieu of providing them loans which do not have logically plausible justifications. There are certain implicit presumptions attached to conventional structure of contemporary banking model which too are problematic. The study presents a new self-sustainable (i.e. autopoietic) banking model which is based on ex-post instead of ex-ante levy. The comparison of autopoietic banking model with contemporary banking model shows that the proposed model will be more responsive to financial distractions and will be helpful in reducing financial crises as there will be lesser chance of mismatch between conventional structure and operational behavior of the system.