It has been alleged th at judicial foreclosure, owing to its lengthy process hasrnres ulted in bad business culture, which in tum, has adversely affected the income ofrnbanks and the banking business in particular and the interest of the segment of the publicrnwho deposit money with banks in general. And the recent laws of power of salernforeclosure (proclamation No 97/1998 and 98/1998) have been issued believing that thernissuance of these laws would redress the said problems.rnThe study analyzes and identifies the problems surrounding the laws and practicernof power of sale fo reclosure in Ethiopia.rnThe study concludes by recommending alternative solutions which would help notrnonly collection of bank loans but that fairly serves all classes of creditors and debtors andrnenable investment and business to flourish.