The objective of this study is to determine the relationship between Profit Sharing Financing on Islamic Banking in Indonesiaand the internal and external factors of Islamic Bank. The internal factors in this study are Return on Asset (ROA) and Capital Adequacy Ratio (CAR) and the external factor is Islamic Certificate of Bank Indonesia (SBIS) and Inflation. The methodology used in this study to find the short-run and long-run relationship among those variables was Vector Error Correction Model (VECM). This study used monthly data within period of December 2011-November 2016. It found thatall independent variables influenced PSF significant in short-run correlation except ROA. In long-run correlation,all independent variables influenced PSF significant.