German Chancellor Angela Merkel is defending a deal agreed with other Eurozone leaders to restore financial stability.
The agreement allows struggling banks to receive money directly from Eurozone bailout funds - something originally opposed by Germany.
A single supervisory body for Eurozone banks will also be set up by the end of the year.
Mrs Merkel says the deal on lending will provide sufficient safeguards for the money used by the EU bailout funds.
Some 10 billion euros will be put into the European Central Bank - a move that is expected to raise its lending capacity by six times that amount.
The German Bundestag, (lower house), later approved the deal by a huge margin, with 491 votes for and 111 against. The BBC reports the upper house is expected to follow suit.
