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In a speech at Reuters, in Canary Wharf, the shadow chancellor is expected to say the Treasury and Financial Services Authority will be urged to ban big cash bonuses being paid to bankers.
It is thought that the Conservatives would seek to protect bonuses of less well paid staff who work in bank branches, so would allow bonuses of less than £2,000 to be paid.
The measure, described by the Tories as an “emergency” plan, would be temporary, and would work alongside the new agreement signed by the banks and the FSA.
And it would only apply to High Street retail banks, which means investment banks would be exempt.
However, the proposed change would apply to the investment arms of banks that also lend to consumers.
Mr Osborne is expected to say “emergency steps” need to be taken “to support bank lending and move the economy forward”.
It is thought he will tell his audience: “The cash that would have been paid out should be put onto banks’ balance sheets explicitly to support new lending.
“This should be a condition of continuing to receive taxpayer guarantees and liquidity support. I am not insensitive to the need of Britain’s banks to remain competitive and retain their most talented staff.”
BBC political correspondent Laura Kuennsberg says Mr Osborne will say that where banks want to pay bonuses to senior staff, those bonuses should take the form of “new equity capital”, by which he means “shares in the business”.
The head of the FSA, Lord Turner, expects banks very soon to spell out how their bonuses will be divided up.
The Treasury has criticised Mr Osborne’s demands as posturing.
Liam Byrne, chief secretary to the Treasury, said: “Mr Osborne’s hypocrisy beggars belief.
“The Tories have fought against every plan we’ve delivered to support jobs and businesses. And if we withdraw support now, as Mr Osborne wants, the recession will be longer and deeper.
“We have already introduced the toughest bank remuneration policy in the world. We have stopped short of banning all bonuses for retail banks because it is unworkable, but we are presently negotiating with RBS and Lloyds on the payment of 2009 bonuses”.

Mohammed Yusuf, leader of an Islamic sect which launched deadly raids across northern Nigeria, has died in police custody,
officially as he was trying to escape.
His followers attacked several police stations, threatening to overthrow the government and impose strict Islamic law – but
who exactly are the group known locally as the Taliban?
Since the group emerged in 2004 they have become known as “Taliban”, although they appear to have no links to the Taliban in
Afghanistan.
Some analysts believe they took inspiration from the radical Afghans, others say the name is more a term of ridicule used by
people in Maiduguri, the city where they were founded.
The group is also referred to as Boko Haram, which means “Western education is a sin” – one of their core beliefs.
Isa Sanusi, from the BBC’s Hausa service, says the group has no specific name for itself, just many names attributed to it
by local people.
If their name is uncertain, however, their mission appears clear enough: to overthrow the Nigerian state, impose an extreme
interpretation of Islamic law and abolish what they term “Western-style education”.

Chief Sunday Inengite remembers the day the foreigners who had come to his village in Nigeria’s Niger Delta struck oil.
“They made us be happy and clap like fools, dance as if we were trained monkeys,” he says.
Years later, the 74-year-old now looks back on his youthful enthusiasm with sour regret.
Nigeria has become Africa’s biggest oil producer, but the people of Oloibiri complain they have not seen much of the money made in the 52 years of oil production.
“It smacks of wickedness, hard-heartedness,” he says.
The village elders thought they were looking for palm oil – a valuable edible oil that had been exported from West Africa since the first European traders arrived hundreds of years before.
“It wasn’t until we saw what they called the oil – the black stuff – that we knew they were after something different,” Mr Inengite said.
The explorers threw a party at their house-boat and invited everyone from the village to see samples of the oil they had been looking for.
“You can imagine the jubilation, after all they had been looking for oil in commercial quantities for years.”
But now he says the environment has been damaged, affecting fish catches, and the small plots of land where people had grown crops are polluted by oil spills and gas flares.
“You see fish floating on the surface of the water, something we didn’t know before.”
“It may be difficult to make a catch that will be enough for your family for one day.”

The only way to shut down the oil cartels, observers say, is a tighter regulatory framework.
This would involve electronic bills of how much oil a ship has loaded, which would record if they had been tampered with.
Oil can also be “fingerprinted”.
The technology to distinguish between different types of oil exists already, says Patrick Dele Cole, a former adviser to Mr Obasanjo.
Oil companies do this routinely already, sources say. All that would be needed is a database of all the different types of Nigerian crude.
The UK has offered to train the military, and President Yar’Adua wants to form a “maritime academy” naval installation in the Delta.
But activists in the Delta say that increasing the military presence would be counterproductive.
It would increase resentment and militants’ numbers – the level of violence would rise, they say.
And the Nigerian military is part of that violence, observers say.
Soldiers have indiscriminately burned whole towns and killed civilians, according to activists.
The high price of oil today is partly a result of Nigeria’s complex and shadowy world of corruption and violence.
It is into this chaotic shadow world that the UK is about to commit itself.

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After leaving prison, Muntadar al-Zaidi went straight to al Baghdadiya – the TV station he was working for at the news conference where he threw the shoes.
Addressing his own news conference, he said he had been tortured: “At the very moment that the Prime Minister Mr al-Maliki was on TV saying he wouldn’t rest until he was sure I was sleeping on a comfortable bed, I was being hideously tortured.
“I was being given electric shocks, and being hit with cables and steel roods… I was left handcuffed and immersed in water until dawn in cold weather. I demand that Mr al-Maliki apologise for concealing the truth.”
An advisor to the prime minister told the BBC that the torture allegation should be investigated.
And a spokesman for the ministry of human rights told us they do not believe he was tortured in the jail where he spent the past nine months, as it is a “detention centre with acceptable human rights standards”.
They concluded that, if he was tortured, it must have happened soon after he was arrested and before his trial.
At his news conference, Mr Zaidi offered an explanation for his shoe-throwing protest.
“I’m not a hero,” he said, “but when I saw the war criminal Bush, I wanted to show my resentment – after six years of occupation, this killer came to my country smiling and bragging about victory.”
He went on: “When I saw the pictures of the dead, it kept me awake at night.”
He also addressed objections that journalists should throw questions at presidents, and not shoes: “If I gave the profession of journalism a bad name, I apologise,” he said.

Then they look out of their windows and see land they believe is theirs disappearing under concrete, as Israel builds homes for Jews in the occupied territories.
That is why the Obama administration in Washington has been pushing hard for a freeze on settlement building, to create a better atmosphere for talks.
Israelis are surprised, hurt and a little angry that an American president appears to be putting the feelings of the other side above theirs.
A former American negotiator looked back on the long record of failure in peace talks and said that one of the problems was that the US acted as Israel’s attorney.
America’s commitment to Israel is still unshakeable but it looks as if President Obama wants to try to be more like an honest broker, not the family lawyer.
By the way, there is plenty of pressure on the Palestinians too. But that is as predictable as the summer sun around here.
When the BBC sent me to live in Jerusalem in 1995, it was in the early days of the Oslo peace process. I left behind a perfectly good news story in Bosnia, with which I was somewhat in love. A Spanish colleague in Sarajevo asked me what on earth I was doing.
“They’ve made peace in the Middle East,” she said. “You’re nuts. The story’s over.”
But a couple of months after I arrived, a Jewish fanatic shot Israel’s prime minister dead and that peace process started taking blows that in the end killed it. A couple of years later my Spanish friend moved to Jerusalem.
Every attempt at peacemaking has failed. The fundamental problem has not been solved.
Two peoples, both haunted by the past, want the same piece of land and cannot find a mutually acceptable way to share it, or split it.
Until they do, there will not be peace here or anything like it.

US President Barack Obama has led international condemnation of Sunday’s double suicide bomb attack in Baghdad that killed at least 132 people.
Mr Obama branded the attacks – the worst in more than two years in Iraq – “hateful and destructive”.
UK Foreign Secretary David Miliband said they were a “terrible reminder of the threat from violent extremism”.
The blasts hit the ministry of justice and a provincial government office near the heavily fortified Green Zone.
More than 520 people were also injured when the two car bombs exploded in quick succession at 1030 (0730 GMT) as people headed to work during the rush hour.
The White House said President Obama had spoken to Iraqi PM Nouri Maliki and President Jalal Talabani to pledge his support.
Mr Obama said in a statement: “I strongly condemn these outrageous attacks on the Iraqi people, and send my deepest condolences to those who have lost loved ones.
“These bombings serve no purpose other than the murder of innocent men, women and children, and they only reveal the hateful and destructive agenda of those who would deny the Iraqi people the future that they deserve.”
not succeed.”
The International Zone, or Green Zone, is the administrative heart of the capital.
The Iraqi authorities said the suicide bombers drove their vehicles into parking bays and detonated them.
Traffic limits in the street were eased six months ago and blast walls repositioned as part of a programme which Mr Maliki said showed progress was being made against insurgents.
Dozens of the dead were said to be staff members of the ministry of justice and Baghdad provincial government.