them, and because of their much hindering from Allah's way, And of their taking usury when they were forbidden it, and of their devouring people's wealth by false pretenses, We have prepared for those of them who disbelieve a painful doom." (Al Quran – 4:160–161) Riba is forbidden in Islamic economic jurisprudence (fiqh). Islamic jurists discuss two types of riba: an increase in capital with no services provided, which the Qur'an prohibits, and commodity exchanges in unequal quantities, which the Sunnah prohibits. Trade in promissory notes (e.g. fiat money and derivatives) is forbidden. Despite the prohibition of charging interest, during the 20th century a number of developments took place that would lead to an Islamic banking model where no interest is charged but banks would still operate for profit. This was done through charging for loans in alternative ways such as through fees and using different methods of risk sharing and ownership models such as leasing. Medieval Europe The roots of modern banking are traceable to medieval and early Renaissance Europe, including France's Cahorsins in the 13th century and rich Italian cities such as Florence, Venice, and Genoa. Emergence of merchant banks The original banks were "merchant banks" that Italian grain merchants invented in the Middle Ages. As Lombardy merchants and bankers grew in stature based on the strength of the Lombard plains cereal crops, many displaced Jews fleeing Spanish persecution were attracted to the trade. They brought with them ancient practices from the Middle and Far East silk routes. Originally intended to finance long trading journeys, they applied these methods to finance grain production and trading. Jews could not hold land in Italy, so they entered the great trading piazzas and halls of Lombardy, alongside local traders, and set up their benches to trade in crops. They had one great advantage over the locals: Christians were strictly forbidden usury, defined as lending at interest, as it was considered to be a sin. (Islam similarly condemns usury). The Jewish newcomers, on the other hand, could make high-risk loans to farmers against crops in the field, as they were not subject to the Church's dictates. In this way, they could secure grain-sale rights against the eventual harvest. They then began to advance payment against the future delivery of grain shipped to distant ports. In both cases they made a profit from the present discount against the future price. This two-handed trade