The Dutch government will inject the €10 billion into ING via a special type of securities.
ING is one of the world's 20 biggest banks, and recorded its first ever quarterly loss this week, of €585 million. Struggling ING has also sold its Taiwan life insurance business.
Approving the bailout, the European Commission said: "In the current financial climate, even fundamentally sound institutions like ING may experience distress and be required to reassure financial markets of their financial stability."
Brussels approved the Dutch move because it is temporary, with the government planning to restructure ING in 6 months and charging 10 per cent interest for the bailout cash.
ING said it had suffered an underlying net loss of €585 million in the three months to September, compared with a net profit of €1.95 billion a year earlier.
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