A system and method are provided for retaining brake pads in disc brakes, such as air-operated disc brakes utilized on commercial vehicles, and for installing and removing brake pads, without the need to employ brake pad retaining devices which radially over-top the brake pads. A preferred embodiment includes a retaining element, preferably a spring steel clip, having protrusions which face in opposite directions to engage corresponding slots in a brake pad lateral edge and in a brake pad carrier brake pad-facing surface. When installed in a radially-inward direction, the brake pad carrier side protrusion engages the brake pad carrier slot, and cooperates with the brake pad lateral side protrusion to resist brake pad movement in the radially-outward direction. The brake pad carrier side protrusion may be manually pressed toward the brake pad to disengage the protrusion from the carrier slot to permit withdrawal of the brake paid from the carrier.