According to reports, Osborne will endorse the plans today in his formal response to the Banking Commission’s recommendations.
He will speak in favour of a tougher corporate governance regime, including the strengthening of banks’ boards, and will make it a criminal offence to run a bank in a ‘reckless manner’.
The Financial Times said the key proposals from the commission, which was headed by Tory MP Andrew Tyrie, will be added to the banking reform bill in the Commons.
The Chancellor set up the commission last year in the wake of the Libor rigging scandal, but he has also rejected some of its ideas.
The commission suggested UKFI – which controls the government’s stakes in Lloyds and Royal Bank of Scotland – be scrapped because it cannot escape political interference. However, Osborne is understood to be keen to stick with the organisation.