Episode 136 – When Regulatory Simplification Gets Complicated

In this episode of Current Account, Clay is joined by Doug Elliott, Partner at Oliver Wyman, and Andrés Portilla, Managing Director of Regulatory Affairs at the IIF, to take a closer look at the growing global debate over regulatory modernization. Fifteen years after the Global Financial Crisis led policymakers to introduce an expansive set of rules designed to reinforce financial stability, many jurisdictions are now questioning whether the existing framework has become overly complex, duplicative, or limiting to growth. Together, Clay, Doug, and Andrés unpack what modernization really means today, whether it is simplification, de‑layering, right‑sizing, or true deregulation, and why the conversation is gaining urgency across markets. Doug lays out the philosophical and practical forces behind modernization efforts globally, while Andrés discusses the findings of the recent IIF Report, "Modernization and Simplification — Revamping the Global Banking Regulatory Framework" - underscoring how overlapping constraints and diverging national interpretations create unnecessary friction for banks operating across borders. The discussion also turns to the ongoing debate over central bank independence, an issue increasingly intertwined with the regulatory modernization agenda. They examine how these debates differ across jurisdictions, how they may influence regulatory decision‑making, and why a credible, independent regulatory framework remains essential for market confidence. In addition, the conversation assesses the role of global standard setters, including the Financial Stability Board and the Basel Committee, in helping ensure consistency as countries revise their approaches at different paces. Clay and his guests discuss why maintaining coherence across borders is critical, even as national politics, growth priorities, and competitive pressures pull policymakers in different directions. This IIF Podcast was hosted by Clay Lowery, Executive Vice President, Research and Policy, with production and research contributions from Christian Klein, Digital Graphics and Production Associate and Miranda Silverman, Senior Program Assistant.