Banks scramble to boost capital ratios. (effects of bank capital regulations on Massachusetts banks) (Industry Overview)

Massachusetts bankers last week were anxiously pumping up their institution's capital funds by any means possible in an attempt to meet federal guidelines that went into effect Dec. 19.

Executives said they were offering stock, getting contributions from individuals and even changing the bylaws of their banks in order to improve their capital ratios.

Martha's Vineyard National Bank, the state's only critically undercapitalized institution to survive the deadline, last week was expecting to get a huge boost from a major shareholder.

Edward S. Redstone, chairman of the $145 million asset bank, will contribute $5.7 million of his own money to the capital fund, raising the core capital from a dismal 0.75 percent to approximately 4.96 percent.

Redstone could not be reached for comment.

Jack Leonardi, treasurer …