The banking industry is considering whether to embrace a proposal for fixed-margin home loans whose rate stays at a set premium to the banks' cost of funds.Australian Bankers Association CEO Steven Münchenberg told Banking Day last night that the ABA was examining a proposal from the Greens and that banks could respond with a fixed-margin product."We are looking at it seriously," he said. "We do see some prickly issues with it, such as its potential volatility, and whether people will fully understand what they are getting."But, he said, a product with a fixed margin to the banks' cost of funds might be workable.In the last parliament, the Greens introduced legislation that would require the banks to offer "basic" bank accounts, fixed-margin home loans, capped ATM fees and capped home loan exit fees.The ABA's willingness to consider the Greens' proposal appears in line with an ABA strategy, set out by Münchenberg in a speech last month, to have the industry work more closely with its critics.