Risk Measurement Model and Empirical Study on Housing Loan System Based on Entropy

With the outbreak and diffusion of U.S. subptime crisis all over the world, risk problems have been paid more and more attention. Among these, the issue of risk measurement is prominent. In this paper, we first build up the frame of risk factors of housing loan system, and then introduce the theory of system entropy, making clear the concept and properties of system entropy. Next, by making use of system entropy, we build up the measurement model of housing loan system risk. Finally, we make an empirical study on the present risk situation of housing loan system in China. The results show that the risk entropy of housing loan system is 0.3238, which is between level 2 risk and level 3 risk. The risk is acceptable, however, it is be of importance for the governors to manage and control the housing loan system risk more effectively.