This study examined the relationship and impact of transactional leadership, through its three dimensions—contingent reward, management-by-exception (active), and management-by-exception (passive)—on administrative creativity among employees in the banking sector. The research was motivated by the increasing need to enhance creative behavior in banking institutions operating in competitive and rapidly changing technological environments, alongside inconsistent findings in previous studies regarding the effectiveness of transactional leadership in fostering creativity. A descriptive-analytical survey approach was adopted. Data were collected using a questionnaire comprising 46 items distributed across four dimensions. The questionnaire was administered to a simple random sample of 123 employees selected from 130 distributed questionnaires, achieving a response rate of 95%. The sample size was determined according to the Krejcie and Morgan (1970) table. The findings showed that all study dimensions were perceived at a high level, with mean scores ranging from 4.15 to 4.23. The overall reliability coefficient (Cronbach's Alpha) was 0.778, indicating acceptable internal consistency. Pearson's correlation analysis revealed significant positive relationships between contingent reward and administrative creativity (r = 0.614, p < 0.01), and between management-by-exception (active) and administrative creativity (r = 0.409, p < 0.01), while no significant relationship was found for management-by-exception (passive). Simple linear regression analysis confirmed a significant positive effect of overall transactional leadership on administrative creativity (Beta = 0.355, p = 0.001), explaining 12.6% of the variance (R² = 0.126). The study concludes that contingent reward and active management-by-exception are the most influential dimensions in promoting administrative creativity and recommends redesigning incentive and supervisory systems to strengthen creative behavior in banking organizations............... Keywords:.............. Transactional Leadership; Administrative Creativity; Contingent Reward; Management-by-Exception; Banking Sector; Organizational Motivation.