The banking sector of Yemen is under threat due to the lack of confidence and trust of the prospective clients
that hindered economic development of the country. The study aimed to measure a moderating effect of
transformational leadership on employees’ psychological empowerment and job satisfaction relationship so that
attitudes of the Yemeni can be bumped towards banking. In this study, 160 employees were surveyed in different
branches of four banks in Yemen. The data were analyzed in four stages namely, reliability and validity analysis,
descriptive analysis, multivariate analysis, and hypotheses testing analysis. The study revealed a significant
positive relationship between employees’ psychological empowerment and transformational leadership towards
their job satisfaction level. If the policy makers consider the findings and undertake necessary measures, the
Yemeni banking is expected to be accelerated which will contribute to the economy of the country.