Chinese individuals are considered one of the biggest opportunities for banks anywhere, because they sit on $2 trillion in savings. But so far, foreign banks haven't been permitted to offer them loans or take their deposits in yuan.

Foreign banks can do most types of business with companies, but they have been restricted to foreign currencies in dealing with Chinese individuals.

The process doesn't end with Beijing's approvals. Next, before the banks can begin offering yuan-denominated services to individuals anywhere in the country, the foreign banks must get local authorities in every city in which they operate to approve applications for business licenses.

Even then, it isn't clear whether the banks would immediately be able to begin accepting individuals' deposits or making loans to them in yuan, or whether further approvals will be needed.

The whole process lies in a regulatory gray area because China's national legislature failed at its recently concluded annual session to produce a legal framework for the restructuring of foreign banks in China.

This is unlikely to prevent the banks from getting permission to do yuan business with individuals, but it underscores how uncertain the rules are.

To sign up for The Wall Street Journal Briefing please visit http://www.briefing.wsj.com/hktdc.