Application of Three-Stage DEA Model Combined with BP Neural Network in Microfinancial Efficiency Evaluation

Abstract

The research performed here intends to explore the future development model of new rural financial institutions and determine the financial efficiency goals, thereby providing a huge stage for the development of new rural financial institutions. It applies data envelopment analysis (DEA) to assess financial efficiency to make up for the research gap. First, the relevant theories of rural finance are discussed. Then, some indicators are selected to build an evaluation system. In addition, the DEA method is used to evaluate the rural financial efficiency in Hebei Province by listing the input indexes and output indexes. After training, the backpropagation neural network (BPNN) model is designed and simulated to obtain the evaluation results. The research results show that before 2015, the comprehensive efficiency of Xingtai, Hengshui, Shijiazhuang, and Langfang showed a downward trend. After 2015, the comprehensive efficiency of all cities in Hebei Province tended to be stable, generally stable at about 0.95. It suggests that rural finance in Hebei Province has developed stably in recent years, and the overall efficiency of rural finance has been improved to a certain extent. The simulation results of BPNN demonstrate that the operation efficiency evaluation result of the poverty alleviation development model in the financial support industry is 0.6995, in the interval (0.6, 0.8). In addition, the model operation efficiency is better, indicating that the poverty alleviation development model of the financial support industry has achieved good results and promoted the development of poor rural areas. The research content can provide reference and inspiration for the continuous promotion of rural finance and the formulation and implementation of financial institution reform policies.