As big banks wear another day of criticism over their inertia in reducing interest rates on home loans, in line with the RBA rate cut this week, perhaps it's time industry forces took more active steps to break the cycle of this debate.Various banks' CEOs, as well as others, have observed over the last three years that there is at present - and for the foreseeable future - no more than a weak connection between the anchor of the RBA's rate for overnight lending and the banks' actual cost of funds.National Australia Bank has grumbled about this more loudly than others of late, but it has done little tangible to reposition its approach to pricing, let alone reform its product-set to cater to the need for a new approach.So, what are the options?One is much more frequent revisions to lending rates on consumer products. These should be similar to those that apply to most business loans, which are tied to a funding benchmark with an agreed margin. This approach deserves a trial and, if useful, wider adoption in the consumer market. Talk of fixed margin home loans has floated around the industry.Late in 2010, the Australian Bankers Association was considering whether to embrace a proposal to offer some fixed-margin home loan products, an option informed, to some extent, by support for this approach from the Greens, whose political support props up the minority Australian Labor government.Kevin Davis, research director of the Australian Centre for Financial Studies, also promoted this reform a year ago, though industry debate seems to have petered out.