The Tories dismissed the plans, saying nobody will trust a word Mr Balls says.
The proposal was outlined ahead of the publication of Labour's banking reform paper, which will set out its economic plan and the measures a future Labour government would take.
Under previous rules, bankers' bonuses were often deferred for a period of three to five years, during which time the bonus could be clawed back if necessary.
However, the Bank of England extended the period to seven years at the beginning of the year, saying misconduct such as the rigging interest rates or reckless risk-taking can take longer to emerge.
But Balls said Labour wanted to extend the clawback period further.
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